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Original poster

What exactly constitutes disposable income?

44 replies

fizzbuzz · 27/05/2008 10:25

After mortgage?
After bills and mortgage?
After bills mortgage and food?
Is it how much you have left to spend on yourself when everything is taKen out?

According to Observer yesterday, the average disposable income is £500 per week

Mine isn't . How much is it really?

OP posts:

UnquietDad · 27/05/2008 13:53

I am very very about any definition of class which is primarily related to income.

Who could take 3 months off work unpaid? Nobody among my friends. And that includes teachers, accountants, civil servants, a management consultant, lecturers and someone very high up in a Swiss bank.

Original poster

fizzbuzz · 27/05/2008 13:56

As am I UD. I don't know anyone who could either.......

OP posts:

Quattrocento · 27/05/2008 13:57

I think the issue that's causing confusion is what is disposable income?

Disposable income means income AFTER tax and national insurance has been deducted.

It's nothing to do with how much beer money is left after the mortgage and bills have been paid

So I think it is perfectly possible that it is right.

Original poster

fizzbuzz · 27/05/2008 13:58

So it means take home pay?

OP posts:

noddyholder · 27/05/2008 13:59

I know i was surprised too but was in one of the sundays recently.A lot of people wouldn't survive three months which is scary

jumpingbeans · 27/05/2008 14:00

It's that big chunk of month left at the end of my money

Quattrocento · 27/05/2008 14:02

Yes it means take-home pay

solo · 27/05/2008 14:19

Disposable income Definition

The amount of money which an individual has available to spend on inessential items after essential bills have been met.

solo · 27/05/2008 14:20

So it's left over money, not your take home pay.

CarGirl · 27/05/2008 14:22

I think essential bills are rent/mortgage, council tax & water rates - it does not include food, TV, phone etc

solo · 27/05/2008 14:29

Actually, I was told that the government does not include gas/electric as an essential, so maybe that's how they big up the disposable part...

solo · 27/05/2008 14:30

so, yes you are correct CG.

ninedragons · 27/05/2008 14:35

I suspect that the average is being dragged up not only by people who earn way, way above average but also by people who bought their houses before the property boom and have either paid them off or have comparatively small mortgages. A lot of people over 45 are sitting pretty (I know a lot aren't, but certainly many of that generation are quids in from property).

CarGirl · 27/05/2008 14:36

clearly eating, heating & clothing are a choosable luxury in this day and age

solo · 27/05/2008 14:39

absolutely! you don't need to eat fgs, what's wrong with you!!!!!!

Original poster

fizzbuzz · 27/05/2008 14:41

Well heating soon will be at the rate the prices keep going up

How can you do smething similar to lorry drivers but focusing on domestic fuel bills?

OP posts:

Rachmumoftwo · 27/05/2008 15:01

So food is not classed as essential then? That means there is no hope for wine!

solo · 27/05/2008 15:04

Rach

lizziemun · 27/05/2008 15:14

If it is using the gov figures that probaly right as they have removed utilities, fuel, food and morgages so they can keep inflation down [down].

Also if they include people you earn very high earners then yes you will get silly figures. I would suspect that no one who earns a normal wage has very little disposable income if any with the cost of living rising at a alarming rate that it is at moment.

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