How To Guide For: Understanding The Difference Between Disposable Income & Discretionary Income

Disposable Income is the amount of money that households have available for spending and saving after income taxes have been accounted for. Disposable personal income is often monitored as one of the many key economic indicators used to gauge the overall state of the economy. Discretionary Income is the amount of an individual's income that is left for spending, investing or saving after paying taxes and paying for personal necessities, such as food, shelter and clothing. Discretionary income includes money spent on luxury items, vacations, and nonessential goods and services. To get more information on disposable income and discretionary income and how they are calculated-- click the pictures below to read the articles.