Profits and disposable income

[David Cousens]

Rob,

Your disposable income is your income for a month less any committed 
expenditure for that month. For example the committed expenditure would 
include things like mortgage payments, loan payments, and expenses you 
are generally committed to in advance or on a recurring basis ( may be 
weekly, monthly , annual etc.). You would normally work your disposable 
income out in advance ( e.g. by creating a budget). Your disposable 
income, i.e. the income which is not already committed to pre-existing 
expenses is then available for spending on discretionary items in the 
month concerned, including additional payments on your mortgage.

David

On 06/10/2015 06:46 AM, Rob Cussons wrote:
> Apologies, this may well be a stupid question, but I'm going to ask it
> anyway!
>
> I'm trying to understand what disposable income I have that could be put
> towards an increased mortgage as part of a new house purchase. The simplest
> way for me to see that, I think, is what is my disposable income month by
> month. From what I understand, that disposable income is nothing by the net
> profit = income - expenses by month. Please can someone tell me if this is
> correct?
>
> Thanks!
>

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