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
Recent Examples on the Web
Many borrowers enrolled in SAVE should benefit from the reduction of monthly bills to 5% of their discretionary income, compared with the 10% or more requirement under other IDR plans.
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Annie Nova, CNBC, 13 July 2024
In addition to payments based on 5% of discretionary income, the plan gives borrowers more breathing room by raising the amount of income considered nondiscretionary by 50%.
—Jon Healey, Los Angeles Times, 2 July 2024
Payments are based on a percentage of an individual's discretionary income and can vary between 5 to 20% of discretionary income.
—Raphael Romero Ruiz, The Arizona Republic, 1 July 2024
That means phase two of SAVE, which would've reduced monthly payments from 10% of a borrower's discretionary income down to 5%, is on pause, as is any further cancellation of debt for people who took out smaller initial loan payments and have been paying for 10-plus years.
—Cheyenne Haslett, ABC News, 24 June 2024
See all Example Sentences for discretionary income 
Annie Nova, CNBC, 13 July 2024
In addition to payments based on 5% of discretionary income, the plan gives borrowers more breathing room by raising the amount of income considered nondiscretionary by 50%.
—Jon Healey, Los Angeles Times, 2 July 2024
Payments are based on a percentage of an individual's discretionary income and can vary between 5 to 20% of discretionary income.
—Raphael Romero Ruiz, The Arizona Republic, 1 July 2024
That means phase two of SAVE, which would've reduced monthly payments from 10% of a borrower's discretionary income down to 5%, is on pause, as is any further cancellation of debt for people who took out smaller initial loan payments and have been paying for 10-plus years.
—Cheyenne Haslett, ABC News, 24 June 2024
See all Example Sentences for discretionary income
These examples are programmatically compiled from various online sources to illustrate current usage of the word 'discretionary income.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.
Dictionary Entries Near discretionary income
discretionary income
Cite this Entry
“Discretionary income.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/discretionary%20income. Accessed 27 Jul. 2024.
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