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discretionary income
(redirected from Disposable/Discretionary income)

    Also found in: Encyclopedia, Wikipedia, Hutchinson 0.04 sec.
Discretionary Income
The amount of an individual's income available for spending after the essentials have been taken care of.

Notes:
Essentials are things like food, clothing, and shelter. Although some might consider Chai Lattes and the latest People magazine to be necessary, they are not essentials.

Discretionary income
The amount of income a consumer has available after purchasing essentials such as food and shelter.
discretionary income
Individual income that is not allocated to expenditures for necessities such as food and shelter. Increasing amounts of discretionary income are especially favorable for the prospects of firms that sell luxury or leisure items and services.
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