I once was asked about my discretionary income but then I did not know what is discretionary income meaning so I told them about my then CTC and they said you save a lot then. I couldn't understand why they said so, so later I tried to know what it meant. I am sure many of you are new to the term as well or might even confuse it with disposal income so let me state both their meaning for your better understanding
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What is meant by discretionary income?Discretionary income refers to the amount of money that is left with you at the end of the month. In simple words it refers to the amount of money that one gets after paying for all the bills, taxes and other necessities for the month. For example
Suppose I get Rs 30,000 as my salary and I spent
Rs 4000 on bills, Rs 2000 on taxes, Rs 9000 on groceries and all, the amount I have left with me Is Rs 30000-(Rs 4000+Rs 2000+ Rs 9000) = Rs 30000- 15000 = Rs 15000
Now this Rs 15000 is my discretionary income.
What is the difference between discretionary income and disposable income?There is a great difference between discretionary income and disposable income. Disposable income is the amount of money that is left after paying all the taxes. So in this case, the disposable income will be Rs 30000- Rs 2000 = Rs 28000
I hope now you have understood what is
discretionary income meaning
Read More:How much salary for one month is good?
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Authors Of The Question
What is Discretionary Income?
Himangshu
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1 Answers
2 Year
2022-11-15T19:05:12+00:00 2022-11-15T19:05:18+00:00Comment
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