ENTREPRENEURSHIP

Detailed explanation-1: -Discretionary income is the amount of income a household or individual has to invest, save, or spend after taxes and necessities, like mortgages or rent, utilities, student loans, or credit card debts are paid.

Detailed explanation-2: -Disposable Income. Discretionary income and disposable income are terms often used interchangeably, but they refer to different types of income. Discretionary income is derived from disposable income, which equals gross income minus taxes.

Detailed explanation-3: -What Is a Discretionary Expense? A discretionary expense is a cost that a business or household can survive without, if necessary. Discretionary expenses are often defined as nonessential spending. This means a business or household is still able to maintain itself even if all discretionary consumer spending stops.

Detailed explanation-4: -Conclusion. The term “disposable income” is used to describe the amount of money left over after taxes have been taken out of a person’s or family’s earnings. Discretionary income, on the other hand, is what’s left after a person pays their taxes and their fixed costs like housing, food, and clothing.