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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Monthly payments are capped at 20% of a borrower’s discretionary income on ICR or 10% on PAYE. —

Kamaron McNair, CNBC, 3 Jan. 2025 Consumers with discretionary income are investing more money into creature comforts for the home in general. —

Whizy Kim, Vox, 20 Dec. 2024 During Trump's first term, his administration pushed for monthly payments to increase from 10 to 12.5 percent of borrowers' discretionary income and also wanted to merge all IDR plans into one simplified option. —

Daniel R. Depetris, Newsweek, 13 Dec. 2024 Those plans cap your monthly payments at a percentage of your discretionary income and forgive any of your remaining debt after a certain number of years. —

Annie Nova, CNBC, 1 Dec. 2024 See all Example Sentences for discretionary income

Dictionary Entries Near discretionary income

discretionary account

discretionary income

discretion is the better part of valor

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“Discretionary income.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/discretionary%20income. Accessed 22 Jan. 2025.

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