disposable income

noun

1. the part of a person's income remaining after deducting personal income taxes.

2. (in national income accounting) the total disposable income of all consumers.

disposable income

noun

1. the money a person has available to spend after paying taxes, pension contributions, etc

2. the total amount of money that the individuals in a community, country, etc, have available to buy consumer goods

Word History and Origins

Origin of disposable income¹

First recorded in 1945–50

Example Sentences

Research suggests that Americans spend almost $150,000 over their lifetime on luxuries and treats, or the equivalent of more than 20% of their monthly disposable income.

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In recent years, Lego has cultivated a devoted base of adult fans, who might not have been able to afford the pricey Danish kits as kids but now come armed with fervor and disposable income.

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Other tailwinds include an improving regulatory environment that simplifies the listing process, a growing middle class and rising disposable incomes.

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The trend toward extravagance dovetailed nicely with the emergence of baby boomers and older Gen X–ers with more disposable income, the hankering for less-traveled international locales and a generational shift toward more creature comforts.

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Former St. Louis Fed president James Bullard notes that the ratio of household net worth to disposable income is around postwar highs.

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