Personal Income

And finance Allah shmoop What is disposable personal income It's

not the pennies you throw into a dumpster because they're

not worth the extra weight in your pocket And it's

not one hundred dollar bills you usedto light your Saturday

night bonfires The term disposable personal income refers to the

amount of money you have left over after paying taxes

Your net pay the amount you have remaining Teo you

know spend however you want Well it's the fourteen of

the month payday You get the first of your bi

monthly paychecks Your salary is fifty two grand a year

In theory you should get two grand for each two

week pay period right You have twenty six of them

on to grant the thousand dollars a week roughly that

you're earning But in practice that's not what you get

to spend Some of the money comes out as taxes

The party here paycheck that you can actually deposit in

the bank on Lee comes to thirteen hundred thirty dollars

Yep you start with two grand six hundred seventy then

comes out as taxes Federal state county whatever And you're

left with thirteen thirty That number is your disposable income

will disposable personal income or D P I Is an

economic stat tracked by the U S Department of Commerce

It's part of a series of figures that gauge the

wealth of consumer spending at least the ability to spend

the more disposable income the more consumers have to spend

the more money to slosh around in the economy Well

of course Ah the amount of that disposable income you

actually get to have fun with you know used to

light bonfires and such Well that depends on how much

money you make out of the disposable personal income You

still have to pay for necessities you know like rent

and food and the Internet and frappuccinos You know the

basics If you're poor well that stuff takes up most

storm or than all your disposable income You get a

little raise and now you're disposable incomes three grand a

month Out of that you have to pay your basic

expenses right Your mortgages fifteen hundred bucks You spend five

hundred dollars a month on food You have utilities like

electricity and the Internet And you know all that stuff

comes to around two hundred bucks at another hundred bucks

for gas because you don't drive it Tesla at two

hundred bucks for your car payment because you bought an

expensive car Well you're already up to twenty five hundred

dollars in bills and you haven't even bought your first

Frappuccino What will you d'oh well by the end of

the month there isn't a whole lot left over after

that three grand you took in you know for clothes

or insulin or something well your cousin does a little

better he's a veterinary proctologist and pulls in ten thousand

dollars a month in disposable income you know those guys

make bank well his expenses are a little higher than

yours three grand a month mortgage payment thousands wait for

food three fifty for utilities two hundred for gas for

fifty for the car payment you know all told his

expenses come to five grand a month but that represents

only half his disposable income he still has another five

grand to go spend on trips to vegas our tickets

to hamilton or you know just save well your other

cousin is really doing well she's a famous tv chef

and she brings in a one hundred fifty grand a

month in disposable income Will her necessities are much more

expensive Fifty grand in mortgage on her mansion thirteen grand

a month for her household staff Five grand a month

for the top and food flown in You know fresh

still alive and kicking a grand for utilities Ten grand

for her fleet of car payments Eight hundred a month

for fresh cut rose petals to sprinkle around her bath

each morning Yeah and the two hundred dollars a month

she pays to her veterinary proctologist cousin to take care

of her cats Hemorrhoids All told eighty grand in monthly

expenses yet more than twice your yearly total disposable income

Yeah she has another seventy thousand dollars each month on

top of that amount which still needs to be disposed

of Maybe she'LL take her cat on a nice spa

vacation Tio let whiskers forget about his You know back

side issues for awhile Yeah we could only hope Yeah