disposable income

Definition

The amount of income left to an individual after taxes have been paid, available for spending and saving.

Use disposable income in a sentence

After I received that promotion at work, I looked at my budget and was happy to see the distinct increase my disposable income.

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In order to cover the cost of damages to my house after last week's storm, I had to spend some of the disposable income I'd been saving up for a vacation.

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After paying essential bills, many young people choose to use their left over disposable income rather than putting it into savings for a future home or car.

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marginal propensity to save multiplier