disposable income??

theerroll

What would you consider to be disposable income??
Is it spare cash after all living expenses?? Including fuel, travel costs, food, entertainment such as sky and broadband??
Or is it the money left over after paying only the essential bills such as utilities, taxes mortgage/rent etc...

Also what would you consider to be a decent figure that might be considered as disposable income???

Thanks all!!

Archi_Bald

I consider disposable income the amount of money I have available after I paid my income, capital gains and council taxes.

I don't know how anyone could define a "decent" figure for disposable income, and I doubt any figure anyone would come up with would be meaningful.

grumbler

IMO "after all financial commitments" is more reasonable.
If so, this also includes water and energy bills, mortgage, loan payments, etc.

El_Torro

I would say that disposable income is any money left over after paying the regular bills. So for example Sky TV can be considered a luxury but since you know you're paying it every month I would deduct that figure.

If you know you're going to be eating in a restaurant once a week I'd say that the money spent on that is part of your disposable income, since it's something you can easily cut back on if you want to.

enthusiasticsaver

I consider disposable income to be the money left over after paying essential bills and savings/investments but I guess some people would say that should come out of disposable income. For as long as I can remember we have deducted essential outgoings and savings from our salary each month and then split the remainder into 3, 1/3 goes to my husband for his spends, 1/3 to me and 1/3 left in the joint account for joint/household spends. Our present income allows us £500 in each of those pots and that is more than comfortable for use but years ago when we had young children and a mortgage it was probably more like £25.

Kim_kim

I would class it as the money left to spend on entertainment & luxuries.
Money for gyms & hobbies, money for unneeded (but wanted) clothes.
Money for beauty treatments, nails & hair dressing. Money for cosmetics & posh toilitries.
Money you can enjoy :-)

Archi_Bald

http://www.oxforddictionaries.com/definition/english/disposable-income

enthusiasticsaver

Archi_Bald wrote: »

http://www.oxforddictionaries.com/definition/english/disposable-income

According to this definition disposable income is not after essential bills but only after taxes. However discretionary income is after basic living costs and taxes.