discretionary income

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Discretionary income

The amount of income a consumer has available after purchasing essentials such as food and shelter.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.