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Econ Videos 79 videos

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Econ: What is Disposable Personal Income? 1 Views


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Description:

What is Disposable Personal Income? Disposable personal income is the amount of money people have to use after they’ve paid income taxes. This figure is looked at to determine the strength of the economy because most of that money ends up being spent on goods and services.

Language:
English Language

Transcript

00:00

And finance Allah shmoop What is disposable personal income It's

00:08

not the pennies you throw into a dumpster because they're

00:11

not worth the extra weight in your pocket And it's

00:13

not one hundred dollar bills you usedto light your Saturday

00:16

night bonfires The term disposable personal income refers to the

00:20

amount of money you have left over after paying taxes

00:23

Your net pay the amount you have remaining Teo you

00:27

know spend however you want Well it's the fourteen of

00:30

the month payday You get the first of your bi

00:32

monthly paychecks Your salary is fifty two grand a year

00:36

In theory you should get two grand for each two

00:38

week pay period right You have twenty six of them

00:41

on to grant the thousand dollars a week roughly that

00:43

you're earning But in practice that's not what you get

00:45

to spend Some of the money comes out as taxes

00:48

The party here paycheck that you can actually deposit in

00:51

the bank on Lee comes to thirteen hundred thirty dollars

00:54

Yep you start with two grand six hundred seventy then

00:57

comes out as taxes Federal state county whatever And you're

01:01

left with thirteen thirty That number is your disposable income

01:05

will disposable personal income or D P I Is an

01:09

economic stat tracked by the U S Department of Commerce

01:12

It's part of a series of figures that gauge the

01:14

wealth of consumer spending at least the ability to spend

01:17

the more disposable income the more consumers have to spend

01:20

the more money to slosh around in the economy Well

01:23

of course Ah the amount of that disposable income you

01:26

actually get to have fun with you know used to

01:29

light bonfires and such Well that depends on how much

01:32

money you make out of the disposable personal income You

01:35

still have to pay for necessities you know like rent

01:38

and food and the Internet and frappuccinos You know the

01:40

basics If you're poor well that stuff takes up most

01:44

storm or than all your disposable income You get a

01:47

little raise and now you're disposable incomes three grand a

01:50

month Out of that you have to pay your basic

01:52

expenses right Your mortgages fifteen hundred bucks You spend five

01:56

hundred dollars a month on food You have utilities like

01:59

electricity and the Internet And you know all that stuff

02:02

comes to around two hundred bucks at another hundred bucks

02:04

for gas because you don't drive it Tesla at two

02:07

hundred bucks for your car payment because you bought an

02:09

expensive car Well you're already up to twenty five hundred

02:12

dollars in bills and you haven't even bought your first

02:15

Frappuccino What will you d'oh well by the end of

02:17

the month there isn't a whole lot left over after

02:20

that three grand you took in you know for clothes

02:23

or insulin or something well your cousin does a little

02:26

better he's a veterinary proctologist and pulls in ten thousand

02:30

dollars a month in disposable income you know those guys

02:32

make bank well his expenses are a little higher than

02:35

yours three grand a month mortgage payment thousands wait for

02:38

food three fifty for utilities two hundred for gas for

02:41

fifty for the car payment you know all told his

02:43

expenses come to five grand a month but that represents

02:46

only half his disposable income he still has another five

02:49

grand to go spend on trips to vegas our tickets

02:52

to hamilton or you know just save well your other

02:55

cousin is really doing well she's a famous tv chef

02:58

and she brings in a one hundred fifty grand a

03:00

month in disposable income Will her necessities are much more

03:04

expensive Fifty grand in mortgage on her mansion thirteen grand

03:08

a month for her household staff Five grand a month

03:11

for the top and food flown in You know fresh

03:14

still alive and kicking a grand for utilities Ten grand

03:17

for her fleet of car payments Eight hundred a month

03:19

for fresh cut rose petals to sprinkle around her bath

03:22

each morning Yeah and the two hundred dollars a month

03:24

she pays to her veterinary proctologist cousin to take care

03:27

of her cats Hemorrhoids All told eighty grand in monthly

03:30

expenses yet more than twice your yearly total disposable income

03:35

Yeah she has another seventy thousand dollars each month on

03:38

top of that amount which still needs to be disposed

03:41

of Maybe she'LL take her cat on a nice spa

03:43

vacation Tio let whiskers forget about his You know back

03:47

side issues for awhile Yeah we could only hope Yeah

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