He's got a point, there, Daws. Why don't you look up the meaning of "disposable income" and then try and figure out how money that one spends on hobbies and jet skis relates to disposable income, and see if you can't reason your way around to why you look stupid when you describe these two things as mutually exclusive.
He's got a point, there, Daws. Why don't you look up the meaning of "disposable income" and then try and figure out how money that one spends on hobbies and jet skis relates to disposable income, and see if you can't reason your way around to why you look stupid when you describe these two things as mutually exclusive.
yeah the on the top of his head.
as I said, your opinion of what is stupid and what is not is subjective
Disposable income is total personal income minus personal current taxes.
[1] In national accounts definitions,
personal income, minus
personal current taxes equals disposable personal income.
[2] Subtracting personal outlays (which includes the major category of
personal [or private] consumption expenditure) yields personal (or, private)
savings, hence the income left after paying away all the taxes is referred to as disposable income.
Restated, consumption expenditure plus savings equals disposable income
[3] after accounting for transfers such as payments to children in school or elderly parents’ living arrangements.
[4]
The
marginal propensity to consume (MPC) is the fraction of a change in disposable income that is consumed. For example, if disposable income rises by $100, and $65 of that $100 is consumed, the MPC is 65%. Restated, the marginal propensity to save is 35%.
Discretionary income is disposable income (after-tax income), minus all payments that are necessary to meet current bills. It is total personal income after subtracting taxes and typical expenses (such as rent or
mortgage, utilities, insurance, medical, tithe, transportation, property maintenance, child support, food and sundries, etc.) to maintain a certain
standard of living.
[6] It is the amount of an individual's income available for spending after the essentials (such as food, clothing, and shelter) have been taken care of:
Discretionary income = gross income - taxes - all compelled payments (bills)
Despite the definitions above, disposable income is often incorrectly used to denote
discretionary income. The meaning should therefore be interpreted from context. Commonly, disposable income is the amount of "play money" left to spend or save. The
Consumer Leverage Ratio is the expression of the ratio of total household debt to disposable income.
so there...
poor peoples income is all disposable and not discretionary !