The income a person has available for spending, saving, or investing after all taxes and other mandatory obligations have been paid.
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.
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.