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.