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What are the Uses of Disposable Income?

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We can define disposable income as all income after deducting income tax. All income such as office salary, side hustle. rental yield, investment returns in the form of capital gains and interest. In general, employee salaries will be deducted directly by the office/company, so that we receive net income.

Why do we need to calculate disposable income?
Disposable income or net income after tax is an important factor for making financial planning or expenditure budget.
 
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