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
If the digital nouveau riche have sufficient discretionary income to unseat the coupon-clipping linear-TV gang, all that outsized buying power may not necessarily translate to a full-on tech takeover.
—
Anthony Crupi, Sportico.com, 18 Mar. 2026
The plans limit monthly payments to a share of discretionary income and cancel any remaining debt after a certain period, typically 20 or 25 years.
—Annie Nova, CNBC, 17 Mar. 2026
And, once that plan is approved, a large portion of your discretionary income may be directed toward creditors for the duration of the plan.
—Angelica Leicht, CBS News, 13 Mar. 2026
That amount is generally set at 10% of discretionary income, divided by 12, for people who borrowed after July 1, 2014, and 10% for people who borrowed before that date.
—Connor Greene, Time, 11 Dec. 2025
See All Example Sentences for discretionary income
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Anthony Crupi, Sportico.com, 18 Mar. 2026
The plans limit monthly payments to a share of discretionary income and cancel any remaining debt after a certain period, typically 20 or 25 years.
—Annie Nova, CNBC, 17 Mar. 2026
And, once that plan is approved, a large portion of your discretionary income may be directed toward creditors for the duration of the plan.
—Angelica Leicht, CBS News, 13 Mar. 2026
That amount is generally set at 10% of discretionary income, divided by 12, for people who borrowed after July 1, 2014, and 10% for people who borrowed before that date.
—Connor Greene, Time, 11 Dec. 2025
See All Example Sentences for discretionary income
Cite this Entry
“Discretionary income.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/discretionary%20income. Accessed 24 Mar. 2026.
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