What are the Uses of Disposable Income?

[Suba]

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.

 

[Augusta]

Disposable income or net income is ones real income which you are sure is the money you can use after there's deduction of tax payment. You can budget with your disposal income

 

[King Belieal]

Disposable income is all for the income owner to decide what they want to do with it. The power of decision on what to do with disposable income is all in the hands of the income earner.

 

[Springtime]

We need to know how much disposable income we have in order to do a budget for our spending, saving and investment.

 

[King Belieal]

Disposable income is the actual amount that is left in your hands to be managed by you. It is very important to know your disposable income before taking a job.