Quick Answer: What Is Another Word For Discretionary Income?

What is the disposable income formula?

Disposable income is total personal income minus personal current taxes.

In national accounts definitions, personal income minus personal current taxes equals disposable personal income..

How do I calculate discretionary income?

How is discretionary income calculated?Finds the correct federal poverty guideline for your location and family size.Multiplies that number by 1.5.Subtracts that number from your adjusted gross income.

What is a good discretionary income?

While there are many factors that may affect the percentage of take-home pay that you allocate as discretionary income, the general rule is 30 percent or less.

What is the opposite of disposable income?

Very simply, disposable income is money you have after taking out/paying your taxes. Discretionary income is money that is left over after paying your taxes and other living expenses (rent, mortgage, food, heat, electric, clothing, etc). Discretionary income is based and derived on your disposable income.

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.

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.

What is the difference between disposable income and discretionary income?

For instance, your disposable income is the amount of money you have left over after you’ve paid all of your federal, state and local taxes. On the other hand, your discretionary income is the money you have left over after you’ve paid your taxes plus all of your necessary living expenses.

How do you spend discretionary income?

Here are five smart ways to invest your tax refund — and reap some big rewards.Pay Off Debt. This is probably the least fun way to spend discretionary income because you won’t have anything tangible to show for it. … Meet With a Fee-Only Financial Planner. … Open a 529 Plan for Your Child. … Invest in Your Home. … Take a Vacation.

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 does discretionary income mean?

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 name for disposable income?

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