discretionary income

noun

: income that is left after paying for things that are essential, such as food and housing
She has enough discretionary income to pay for a nice vacation each year.

Examples of discretionary income in a Sentence

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The plans cap borrowers’ monthly payments at a share of their discretionary income and cancel any remaining debt after a certain period, typically 20 years or 25 years. Annie Nova, CNBC, 27 Mar. 2025 But productions have been slow to resume in the L.A. area, meaning that people all up and down the entertainment industry—from actors to editors to gaffers to production assistants—have less discretionary income. Jeremy Repanich, Robb Report, 21 Feb. 2025 The plans cap borrowers’ monthly payments at a share of their discretionary income. Annie Nova, CNBC, 3 Mar. 2025 Regardless of discretionary income, experiences are driving purchasing decisions. Kurt Weinsheimer, Forbes, 10 Jan. 2025 See All Example Sentences for discretionary income

Cite this Entry

“Discretionary income.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/discretionary%20income. Accessed 3 Apr. 2025.

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