Disposable income is discretionary income minus the money needed for necessities to sustain life,such as minimal housing,minimal food,and minimal clothing.

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Disposable income is the amount of money that households have available for spending and saving after income taxes have been accounted for. Discretionary income is the amount of an individual's income that is left for spending, investing, or saving after taxes and personal necessities (like food, shelter, and clothing) have been paid.

Disposable Income Is Discretionary Income Minus the Money Needed for Necessities