• Income minus taxes and mandatory expenses: Disposable income is the amount of money that remains after subtracting taxes and mandatory expenses from an individual's income.
• Discretionary spending: Disposable income is often used for discretionary spending, such as leisure activities, vacations, and entertainment.
• Consumption: Disposable income is a key factor in consumer spending and is often used as an indicator of consumer confidence and economic growth.

Income left for spending after taxes have been deducted from gross income.