Discretionary definitions
| Word backwards | yranoitercsid |
|---|---|
| Part of speech | Adjective |
| Syllabic division | dis-cre-tion-ar-y |
| Plural | The plural of the word "discretionary" is "discretionaries." |
| Total letters | 13 |
| Vogais (4) | i,e,o,a |
| Consonants (7) | d,s,c,r,t,n,y |
What is Discretionary Income?
Discretionary income refers to the amount of money that an individual or household has left over after paying all necessary expenses such as rent, utilities, food, and transportation. It is the money that can be spent on non-essential items or saved for future use.
Calculating Discretionary Income
To calculate discretionary income, subtract all necessary expenses from total income. This includes expenses such as housing costs, insurance, healthcare, and debt payments. The remaining amount is considered discretionary income.
Importance of Discretionary Income
Discretionary income plays a crucial role in a person's financial well-being. It provides individuals with the flexibility to spend on leisure activities, entertainment, travel, savings, and investments. Having a healthy discretionary income can lead to a higher quality of life and financial security.
Managing Discretionary Income
It is essential to manage discretionary income effectively to achieve financial goals and maintain stability. Creating a budget can help individuals track their discretionary spending and prioritize expenses. Investing any leftover funds wisely can also lead to long-term financial growth.
Discretionary Income vs. Disposable Income
While discretionary income refers to the money available after essential expenses, disposable income is the amount of money left after paying taxes. Disposable income includes both necessary and discretionary expenses, providing a broader view of an individual's financial situation.
The Impact of Discretionary Income on the Economy
Discretionary income also has a significant impact on the overall economy. When consumers have more discretionary income, they are likely to spend more on goods and services, boosting economic growth. However, fluctuations in discretionary income can affect consumer spending patterns and ultimately influence the economy.
Discretionary Examples
- The manager has discretionary authority to approve expense reports.
- The discretionary income of the household allows for occasional splurges on luxuries.
- The company offers a discretionary bonus based on performance.
- The judge has discretionary power when it comes to sentencing in court cases.
- Employees have discretionary time off they can use for personal reasons.
- Investors often look for companies with strong discretionary spending potential.
- The board of directors has discretionary control over major company decisions.
- The team captain has discretionary authority to make substitutions during the game.
- Parents have discretionary authority over how to allocate their children's allowance.
- The president has discretionary power to veto bills passed by Congress.