Disposable Income

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Disposable income

The amount of personal income an individual has after taxes and government fees, which can be spent on necessities, or non-essentials, or be saved.

Disposable Income

A person's income after he/she has paid taxes. Disposable income determines what sort of lodging one can afford, how often one can go out to eat, how much one can save, etc. A negative disposable income indicates that an individual is borrowing in order to cover his/her expenses. A country's average disposable income is an important indicator of economic health.

disposable income

Aftertax income, calculated quarterly, that consumers have available for spending or saving. Economists view changes in disposable income as an important indicator of the present and future health of the economy. See also personal income.

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