I do not use the phrase “disposable income” because I believe it trains our minds to believe that any so-called “left over” money at the end of the month is available to burn at will. Sure, having a little money to spend on frou-frou is occasionally fun.
What’s imperative to understand, however, is that you really don’t have ANY money that is disposable. I work hard for every penny I earn. The hours at my day job are time away from home and family, hours with an opportunity cost of not being able to make more money elsewhere during that time, and my work is thinking work which can be seriously exhausting. Frankly, I’m not willing to throw any of that hard-earned money away.
Sure, allocate what you must to pay the bills. But more importantly, earmark every other available cent to your investment account to buy income-producing assets. It is the only way to get ahead and retire on your own terms. Don’t throw money away on anything that won’t earn an income!