LA Business Daily
How much does disposable income increase with salary in reality?
I'd like to know how much a person's disposable income increases with salary as they go up the pay scales. For example, when you earn more, you tend to buy a bigger house etc - so including the bigger mortgage, fancier car etc how much does day to day disposable income increase at different pay scales? Many thanks James
Public Comments
- I think disposable is the wrong word for what you want to know, it is income after taxes. Discretionary income is what you have after you pay your bills. Here is graphic that gives what households spend their money on for different income groups http://www.nytimes.com/2008/02/10/opinion/10cox.html?ex=1360299600&en=9ef4be7de32e4b53&ei=5090&partner=rssuserland&emc=rss&pagewanted=all
- Disposable income is calculated after taxes and transfer payments, but before household expenditures, so your disposable income is not affected by your mortgage or any of those other costs.
