Discretionary Income
Discretionary income is the amount of money that an individual has left over after all necessary expenses have been paid. It is the amount of money that is available to be spent on non-essential items such as entertainment, vacations, and luxury goods. Discretionary income is also known as disposable income and is an important factor in determining an individual’s standard of living.
History of Discretionary Income
The concept of discretionary income has been around since the early 20th century. It was first used by economists to measure the amount of money that households had available to spend on non-essential items. Since then, it has become an important tool for measuring the economic health of a nation. It is used to measure the purchasing power of individuals and to gauge the overall economic health of a country.
Comparison of Discretionary Income
| Country | Discretionary Income (USD) |
|---|---|
| United States | $19,000 |
| United Kingdom | $17,000 |
| Japan | $14,000 |
| China | $7,000 |
Summary
Discretionary income is the amount of money that an individual has left over after all necessary expenses have been paid. It is an important factor in determining an individual’s standard of living and is used to measure the purchasing power of individuals and to gauge the overall economic health of a country. For more information about discretionary income, you can visit websites such as Investopedia, The Balance, and the Bureau of Labor Statistics.
See Also
- Gross Income
- Net Income
- Disposable Income
- Personal Income
- Income Tax
- Savings
- Investment
- Debt
- Credit
- Budgeting
