Quick Answer: What Is The Difference Between Disposable Income And Discretionary Income?

What is the formula to calculate personal income?

Personal Income FormulaPI = NI + Income Earned but not Received + Income Received but not Earned.PI = Salaries/Wages Received + Interest Received + Rent Received + Dividends Received + Any Transfer Payments.More items….

What is the difference between income and disposable income?

Key Takeaways. Disposable income is the net income available to invest, save, or spend after deducting income taxes. Disposable income is calculated by subtracting income taxes from income. Discretionary income is what a household or individual has to invest, save, or spend after taxes and necessities are paid.

What is the definition of disposable income?

Disposable income, also known as disposable personal income (DPI), is the amount of money that households have available for spending and saving after income taxes have been accounted for.

How do you calculate disposable income?

Subtract the tax amount from annual gross income. When you subtract the tax amount from the initial annual income, you get your disposable income, which can be used for spending or saving.

What is disposable income example?

Disposable income is defined as money that a person has left over to spend as he wishes after all of his required expenses have been paid. An example of disposable income is the $100 left in your checking account once all of your bills have been paid.

What is another word for disposable income?

Synonyms for Disposable income:cash flow,change,amount,blood money,bounty,appropriation,bankroll,bailout,More items…

What is another word for discretionary?

In this page you can discover 14 synonyms, antonyms, idiomatic expressions, and related words for discretionary, like: optional, left to discretion, discretional, changeable, arbitrary, judgmental, personal, elective, facultative, opinion and surprise.

What is discretionary income?

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.

What is another word for discretionary income?

What is another word for discretionary spending?disposable incomediscretionary incomedisposable personal incomediscretionary expenses

Which formula accurately represents disposable income?

income + income tax = disposable income income – goods and services = disposable income income – income tax = disposable income income tax – income = disposable income.

What age group has the most disposable income?

During the year 2018/2019, the highest average amount of disposable income for any age group occurred in the 45 to 54 year-old group, at 44.510 GBP. The age group with the lowest average disposable income were those aged 85 and over.

What does discretionary mean?

adjective. subject or left to one’s own discretion. for any use or purpose one chooses; not earmarked for a particular purpose: discretionary income; a discretionary fund.

What is the opposite of discretionary spending?

Antonyms of DISCRETIONARY mandatory, nondiscretionary, necessary, nonvoluntary, requisite, restricted, required, indispensable, nonarbitrary, nonelective, unarbitrary, essential.