Econ: What is Disposable Personal Income?

What is Disposable Personal Income? Disposable personal income is the amount of money people have to use after they’ve paid income taxes. This figure is looked at to determine the strength of the economy because most of that money ends up being spent on goods and services.

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amount of money you have left over after paying taxes

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Your net pay the amount you have remaining Teo you

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

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the month payday You get the first of your bi

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monthly paychecks Your salary is fifty two grand a year

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In theory you should get two grand for each two

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week pay period right You have twenty six of them

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on to grant the thousand dollars a week roughly that

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

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to spend Some of the money comes out as taxes

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The party here paycheck that you can actually deposit in

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the bank on Lee comes to thirteen hundred thirty dollars

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Yep you start with two grand six hundred seventy then

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

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left with thirteen thirty That number is your disposable income

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will disposable personal income or D P I Is an

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economic stat tracked by the U S Department of Commerce

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

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wealth of consumer spending at least the ability to spend

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the more disposable income the more consumers have to spend

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the more money to slosh around in the economy Well

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of course Ah the amount of that disposable income you

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actually get to have fun with you know used to

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light bonfires and such Well that depends on how much

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money you make out of the disposable personal income You

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still have to pay for necessities you know like rent

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and food and the Internet and frappuccinos You know the

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

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storm or than all your disposable income You get a

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

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month Out of that you have to pay your basic

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expenses right Your mortgages fifteen hundred bucks You spend five

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hundred dollars a month on food You have utilities like

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electricity and the Internet And you know all that stuff

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comes to around two hundred bucks at another hundred bucks

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

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hundred bucks for your car payment because you bought an

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

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

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

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

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that three grand you took in you know for clothes

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or insulin or something well your cousin does a little

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

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dollars a month in disposable income you know those guys

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make bank well his expenses are a little higher than

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yours three grand a month mortgage payment thousands wait for

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food three fifty for utilities two hundred for gas for

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fifty for the car payment you know all told his

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expenses come to five grand a month but that represents

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only half his disposable income he still has another five

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grand to go spend on trips to vegas our tickets

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to hamilton or you know just save well your other

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

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and she brings in a one hundred fifty grand a

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month in disposable income Will her necessities are much more

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expensive Fifty grand in mortgage on her mansion thirteen grand

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a month for her household staff Five grand a month

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for the top and food flown in You know fresh

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still alive and kicking a grand for utilities Ten grand

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for her fleet of car payments Eight hundred a month

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for fresh cut rose petals to sprinkle around her bath

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each morning Yeah and the two hundred dollars a month

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she pays to her veterinary proctologist cousin to take care

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of her cats Hemorrhoids All told eighty grand in monthly

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expenses yet more than twice your yearly total disposable income

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Yeah she has another seventy thousand dollars each month on

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top of that amount which still needs to be disposed

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

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vacation Tio let whiskers forget about his You know back

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side issues for awhile Yeah we could only hope Yeah