disposable income

  

Definition

Gross income of an individual or firm from which direct taxes (such as PAYE, income tax) have been deducted. When essential expenditure (such as on food, clothing, shelter) is deducted from the disposable income, the balance is called discretionary income which the income earner is free to spend or save.

Use disposable income in a sentence

  • I have decided to use some of my disposable income to help other less fortunate people by donating a percentage to charity.

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  • If you want to open up a store you should do it in an area where the people with lots of disposable income live.

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  • I know my friend worked a lot and made a lot of money, so I asked him how much disposable income he had, cause I wanted to go to many expensive restaurants with him.

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