Angela earns $2,780 per month before taxes in her full-time job and $1,114 before taxes in her part-time job. Her employers withhold about $720 per month from her checks to pay taxes. What is Angela's disposable income? Why is it important to track disposable income?

Angela's disposable income monthly is $3174 and $38008 per year.

It is very imperative to track disposable income since that is the actual cash that would be received by Angela.

It is also important to track it as consumption, savings and investment decisions relied heavily on it.

Explanation:

Angela's total income before taxes=income from employment+income part-time job

=$2780+$1114

Total income = $3894

Taxes = $720

Disposable income = Total income - Taxes

=$3894-$720

Disposable income = $3174

Disposable income yearly=$3174*12=$38008