What do you do with discretionary income?
Beside this, how do you spend discretionary income?
Discretionary Income: 5 Smart Ways to Spend It
- Pay Off Debt. This is probably the least fun way to spend discretionary income because you won't have anything tangible to show for it.
- Meet With a Fee-Only Financial Planner.
- Open a 529 Plan for Your Child.
- Invest in Your Home.
- Take a Vacation.
Secondly, what kinds of products are purchased with discretionary income? Entertainment products and experiences are commonly included in discretionary spending plans. Theme parks, dining out, arcades and video games are common family-related discretionary purchases. In other instances, family members spend money on personal recreation and leisure activities.
Also Know, what is discretionary income answers?
Discretionary Income. On the other hand, discretionary income is the amount of income a household or individual has to invest, save, or spend after taxes and necessities are paid. The individual has transportation, rent, insurance, food, and clothing expenses totaling $35,000 a year. His discretionary income is $30,000
What is an example of disposable income?
disposable income. noun. Disposable income is defined as money that a person has left over to spend as he wishes after all of his required expenses have been paid. An example of disposable income is the $100 left in your checking account once all of your bills have been paid.