Disposable income is an individuals income having taken away their current taxes, while discretionary income is the money you have left after taking away your current taxes as well as the expenditure on household necessities
For Example, if a family's monthly income is €10,000 but you take away money for their taxes and it becomes €8,000 that is disposable income, but if they spend €2,000 on household necessities such as food, paying rent etc they will have 6,000 left which is their discretionary income, which means they can spend that €6,000 on wants and luxuries or they can save that money or invest in it.
Disposable income is an individuals income having taken away their current taxes, while discretionary income is the money you have left after taking away your current taxes as well as the expenditure on household necessities
For Example, if a family's monthly income is €10,000 but you take away money for their taxes and it becomes €8,000 that is disposable income, but if they spend €2,000 on household necessities such as food, paying rent etc they will have 6,000 left which is their discretionary income, which means they can spend that €6,000 on wants and luxuries or they can save that money or invest in it.