ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Discretionary income is the money you have left over after paying taxes and necessary cost-of-living expenses-like your rent or mortgage, utilities and groceries. It’s called “discretionary income” because it can be used for discretionary expenses-nice-to-haves but not necessities.

Detailed explanation-2: -Discretionary income is the amount of an individual’s income that is left for spending, investing, or saving after paying taxes and paying for personal necessities, such as food, shelter, and clothing. Discretionary income includes money spent on luxury items, vacations, and nonessential goods and services.

Detailed explanation-3: -GLOSSARY. Pertaining to the Income-Based Repayment Plan, the Pay As You Earn Repayment Plan, and loan rehabilitation, discretionary income is the difference between your annual income and 150 percent of the poverty guideline for your family size and state of residence.

Detailed explanation-4: -Budget surplus– A situation where money is left over after all obligations have been paid. Budget deficit– A situation where there is not enough money to cover expenses. Budget–An organized plan for saving and spending based on your expected income and expenses.