Disposable income is income you have left behind after you pay
your taxes.
Discretionary income = Gross
income - taxes - all compelled payments (bills)
This discretionary income is
the income you use for saving for the future and spending today.
Now look at your electricity
bill among the compelled payments for example
I paid 1768 for 760 units in
2011 and 3335 for the same amount of units in 2012. Now my discretionary income
has reduced dramatically. This is alarming, is it not.
The money I have to save or
to spend has reduced even though I have not consumed any more electricity.
Now add the increase in your
spending on other utilities and essentials. Groceries, gas, petrol and diesel etc
Worrying is it not!
food for your thought!!!!
look at this link to understand this better
Warm regards
Chockalingam
