discretionary income
Extra spending cash
Discretionary income is the money left after paying taxes and essential expenses like housing, food, and utilities.
It's what you can spend on wants rather than needs—entertainment, vacations, savings, or luxuries.
Economists track discretionary income as a measure of consumer spending power: With rising rents, young adults have less discretionary income than previous generations.
Reserve for unexpected expenses
- nest eggSaved money for later
- investmentDeploying capital for returns
- retirement savingsMoney reserved for post-career
- 401(k)Tax-advantaged retirement savings account
IRA · stocks · bonds · mutual funds · deposits · portfolio · wealth building · compound interest
Shopping to improve mood
- impulse buysUnplanned spur-of-moment acquisitions
- splurgesSpends lavishly on treats
- treatsSnacks given as rewards
- upgradesImproved replacement versions
dining out · entertainment · subscriptions · hobbies · travel · concerts · gadgets · streaming services
Household purchasing of goods
- purchasing powerEconomic spending ability
- economic indicatorStatistic measuring market health
- cost of livingPrice of basic necessities
- wage growthIncrease in compensation
middle class · household spending · consumer confidence · economic mobility · standard of living · consumption patterns
Earnings after withholdings
- surplusAmount exceeding requirement
- cash flowMoney entering and exiting
- money managementOverseeing personal funds
- financial goalsPlanned monetary milestones
allocation · spending plan · budget surplus · variable expenses · flexible spending · entertainment budget · fun money · pocket money
Free time for relaxation
- recreationRefreshment through leisure
- vacationsExtended leisure breaks
- hobbiesLeisure activities for pleasure
- self-careMaintaining personal wellbeing
wellness · dining experiences · cultural events · theater · festivals · fashion · accessories · personal development
emergency fund
Reserve for unexpected expenses
- nest eggSaved money for later
- investmentDeploying capital for returns
- retirement savingsMoney reserved for post-career
401(k) · IRA · stocks · bonds · mutual funds · deposits · portfolio · wealth building · compound interest · financial cushion
retail therapy
Shopping to improve mood
- impulse buysUnplanned spur-of-moment acquisitions
- splurgesSpends lavishly on treats
- treatsSnacks given as rewards
upgrades · dining out · entertainment · subscriptions · hobbies · travel · concerts · gadgets · streaming services · gym membership
consumer spending
Household purchasing of goods
- purchasing powerEconomic spending ability
- economic indicatorStatistic measuring market health
- cost of livingPrice of basic necessities
wage growth · middle class · household spending · consumer confidence · economic mobility · standard of living · consumption patterns
take-home pay
Earnings after withholdings
- surplusAmount exceeding requirement
- cash flowMoney entering and exiting
- money managementOverseeing personal funds
financial goals · allocation · spending plan · budget surplus · variable expenses · flexible spending · entertainment budget · fun money · pocket money
leisure
Free time for relaxation
- recreationRefreshment through leisure
- vacationsExtended leisure breaks
- hobbiesLeisure activities for pleasure
self-care · wellness · dining experiences · cultural events · theater · festivals · fashion · accessories · personal development · classes
discretionary incomefixed costs
Expenses unchanged by output
bills · living expenses · overhead · necessities · debt obligations
discretionary incomepoverty
Severe lack of resources
destitution · financial hardship · debt · insolvency · living paycheck to paycheck
discretion, discrete, discretely, discreteness, indiscretion, indiscreet, income, incomes