Definition, Meaning & Synonyms
disposable-income
noun
/dɪˈspoʊzəbl ˈɪnkəm/
Definition
Disposable income is the amount of money that an individual or household has available for spending and saving after income taxes have been deducted.
Examples
- Many families use disposable income to plan vacations during the summer.
- With a higher disposable income, people can afford to enjoy luxury items.
- His disposable income increased after he received a raise at work.
Meaning
It refers to the income that can be freely spent on goods and services, as it is the income remaining after all mandatory expenses and taxes have been paid.
Synonyms
- discretionary income
- after-tax income
- net income
