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Originally Posted by Cynthetiq
what does disposable income mean? I bought a $14,000 car when I could have easily bought a $30,000 car.
The monthly payments are $250 vs. $550. Is $300 disposable income? or is it part and parcel of the standard of living?
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I think you're speaking of discretionary income. Generally speaking, in economic terms, disposable income is gross income minus taxes.
http://en.wikipedia.org/wiki/Discretionary_income
But your point makes a lot of sense to me. Exactly what is necessary or what basic needs are can vary greatly. I can get by on very little per month. I remember saving for my first house and cutting everything but hot dogs and Ramen noodles out. It was the mid 80's and I was making just over 1600.00 a month and I managed to put 1k a month in the bank. Would have been able to squeeze more out if it weren't for diapers and baby food.