Legal Definitions - disposable income

Disposable income

Disposable income is the money you have left over after paying for all your necessary expenses. This includes things like rent, food, and bills. It's the money you have available to spend or save as you choose.

For example, if you make $1,000 a week and your necessary expenses are $600 a week, then your disposable income is $400 a week. You can use this money to save for a vacation, buy new clothes, or invest in the stock market.

Another example is if you have a business that makes $10,000 a month and your expenses are $8,000 a month, then your disposable income is $2,000 a month. You can use this money to expand your business, hire new employees, or pay yourself a bonus.

Disposable income is the money you have left over after paying for all your necessary expenses. It's important to know your disposable income because it helps you make decisions about how to spend or save your money. For example, if you have a lot of disposable income, you might choose to invest it in the stock market or save it for a down payment on a house. If you have very little disposable income, you might need to cut back on your expenses or find ways to increase your income.