How Do You Calculate Real Disposable Income?
Disposable income is money that you have to spend after your taxes and all of your fixed expenses are paid. Your disposable income, in other words, is the money you have to spend on whatever you would like each month. It is important to calculate your disposable income so you’ll know how to budget wisely. Add up the amount of money you bring home from your paychecks each month. This means if you bring home two paychecks, you want to add the amounts together. Since most bills are paid monthly, it is easiest to calculate disposable income on a monthly basis. Furthermore, unless you’re self employed, your taxes are taken out of your paycheck by your employer and the amount you actually bring home in your paychecks is a good starting place for calculating real disposable income. Add up your required expenses including rent or house payments, car payments, utilities, payments for credit cards or other debt and payments for anything else you are obligated to pay monthly. You can also include
