Disposable Income
- This is a preview of the essay.
To view the full text you must login!
Disposable income tells us how much a person can spend on the things he or she needs to live, such as food, clothing, and shelter, as well as other consumer goods and services. A limited disposable income can have the effect of impeding an individual's ability to participate in the community and wider society, thus restricting quality of life. Each individual working is doing so to achieve something. People need disposable income in order to pay their bills, to feel that they have a role in society and also to feel a sense of achievement.
Everyone needs disposable income to survive. The more disposable income a person has the more satisfaction that person has. Disposable income is the income available to the household sector after income taxes are paid. It is disposable income, not personal income, that the household sector has available for spending. In particular, the two uses of disposable income are consumption expenditures (C) and saving (S), which is illustrated in this equation:
DI = C + S
(Amos)
About 35 percent of an individual's income is spent for housing (that's the house, utilities, furniture and supplies). The family could win back time, money and vitality by living in a smaller, better-designed house with efficient appliances and good natural daylight; buying well built furniture that doesn't need constant replacing; and having a different attitude about what a house is for...