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Disposable Income vs Discretionary Income: Which One is More?

August 9, 2021 by Bautis Financial

Pop Quiz: Disposable income or discretionary income, which one is more?

Are you confused about disposable income vs. discretionary income?

Disposable income doesn’t mean you can throw it away! It means the money is at your “disposal.” This includes essential and non-essential spending and saving.

Discretionary income is the saving, spending or investing after necessities have been paid. It could be as simple as a latte, dining out or a vacation.

So remember, if the money is at your “disposal” it’s disposable income.

Category: Personal Finance, VideosTag: discretionary income, disposable income, Income, Income Sources
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