I myself had no idea about the discretionary income vs disposable income difference until my HR mentioned it to me. While joining a new job the HR said that after deducting the professional tax, the company will give me Rs 29800 in hand as my disposable income. Now I did not pay much heed towards it that time but later I started to know what it exactly means. I am sure many of you might also be wanting to know the difference between the two so let me explain it to you.
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What is the difference between disposable and discretionary income?
If you get to know the meaning of the two terms, you will automatically find out their difference as well. Disposable income refers to the amount of money that you have remaining after paying the taxes whereas discretionary income refers to that amount of money which is left with you after you have paid for the taxes as well as for the basic necessities of your household.
To explain the
disposable vs discretionary income difference I would like to share with you an example.
Suppose my salary per month is Rs 30,000
Taxes for a month is about Rs 3000
Money spent on household materials per month be Rs 7000
So my Disposable income = Rs (30000-3000)= Rs 27000
My Discretionary income on the other hand is Rs (30000- 3000 - 7000) = Rs 20000
I hope the discretionary income vs disposable income difference as well as the meaning is clear to you now.
Read More:How much salary for one month is good?
What is discretionary income?
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What is Discretionary Income vs Disposable Income?
Hiten
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2022-11-17T11:18:05+00:00 2022-11-17T11:18:07+00:00Comment
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