discretionary income

Definition

The amount of an individual's income available for spending after the essentials (such as food, clothing, and shelter) have been taken care of.

Use this term in a sentence

Keeping a finance diary allows you to know exactly how much discretionary income you have left over at the end of the month for your guilty pleasures

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When my brother got a big raise and promotion at work, he and his wife were able to take a vacation to Aruba with their increase in discretionary income.

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Once the weekly bills are paid, any money left over could be considered discretionary income which could be applied to such activities as dining out or going to the movies.

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autonomous consumption disposable income