Personal income and Disposable income.
Personal Income | Disposable Income |
Personal income is the sum of all incomes actually received by an individual or household from all the sources during a given year. | There are other personal taxes which are not considered when calculating personal income. In order to derive disposable personal income we must subtract these personal taxes from personal income. |
PI = Disposable Income + Personal Income Taxes. | DI = Personal Income - Personal Income Taxes. |
