MSE News:Four in 10 workers have had no pay rise in the last year, poll of MSE...

elsien

Some of us have had no payrise, uplift, or anything else for rather longer than one year. Voluntary sector.

Gavin83

phillw wrote: »

Sorry to be pedantic, but disposable income doesn't mean that.

"What is disposable income?
Disposable income is arguably the most widely used household income measure. Disposable income is the amount of money that households have available for spending and saving after direct taxes (such as Income Tax and Council Tax) have been accounted for. It includes earnings from employment, private pensions and investments as well as cash benefits provided by the state."

You can't say you've had a pay cut because you've chosen to spend or save more.

So what is the amount of money called you've got left at the end of the month to spend on 'stuff' and leisure? I'd always considered this disposable income.

I'd put house and wedding savings in the same category as the likes of car insurance and broadband/phone costs. I don't technically have to spend it but in all honesty I've got little choice and it's a fixed amount. I don't consider it money I've got available to spend, put it that way.

phillw

Gavin83 wrote: »

So what is the amount of money called you've got left at the end of the month to spend on 'stuff' and leisure? I'd always considered this disposable income.

Officially these terms are used at various times:
disposable income/income after taxes
income after housing costs
discretionary income/income after bills

There isn't an official term used after that, because it becomes arbitrary how you spend the rest. If you do a budget then you would then have sections for things like saving, entertainment & impulse purchases (aka pocket money). I guess you mean the total of entertainment & impulse purchases.

I'd say that phone and broadband was a bill while a TV subscription, iPhone, or any kind of savings would be paid from your discretionary income.

Disposable income is used the most often because it's the fairest way of comparing income. To an extent the lowest amount of money that everyone has to spend on bills will even itself out, while there is no limit to how much money people are prepared to spend on themselves left unchecked.

Gavin83 wrote: »

I'd put house and wedding savings in the same category as the likes of car insurance and broadband/phone costs.

Income after housing costs would include rental or mortgage, I'm not sure saving for a deposit while renting counts. What happens if you change your mind and spend it on something frivolous?

Wedding costs are a luxury, they shouldn't be included in anything at all. Friends of mine got married in a registry office and then we all went to a Toby Carvery and bought our own dinner.

Gavin83 wrote: »

I don't technically have to spend it but in all honesty I've got little choice and it's a fixed amount.

It's fixed by you. Why do you feel like you have no choice?

Gavin83 wrote: »

I don't consider it money I've got available to spend, put it that way.

You might not consider it like that, but it is available to spend or you won't be able to spend it on your wedding and house. All you've done is chosen how you are going to dispose of your income.

I do however applaud your discipline.

Malthusian

Gavin83 wrote: »

So what is the amount of money called you've got left at the end of the month to spend on 'stuff' and leisure?

That's discretionary income.

And your house deposit and wedding savings would generally be regarded as part of discretionary income, as you don't need to own a house (although clearly it's very very desirable) and you don't need to spend money on a wedding, beyond about £100 for the registration.

However, it's your budget and if regarding house and wedding savings as essential expenditure helps you plan, go for it.