- 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.
disposable income - Investment & Finance Definition
An individual’s available cash after living expenses are paid. The amount of disposable income that individuals have directly affects the econ-omy because consumer spending accounts for about two-thirds of the economic activity in the United States.