DISPOSABLE PERSONAL INCOME
This week the CSO released their statistics on disposable income per person from 2016.
Disposable income, also known as disposable personal income (DPI), is the amount of money that households have available for spending and saving after income taxes have been accounted for. Disposable personal income is often monitored as one of the many key economic indicators used to gauge the overall state of the economy. Economists use DPI as a starting point to gauge households’ rates of savings and spending.
Disposable personal income minus all payments for necessities, such as mortgage, health insurance, food and transportation, equals discretionary income. This portion of disposable income can be spent on what the income earner chooses or, alternatively, it can be saved. The personal savings rate is the percentage of disposable income that goes into savings for retirement or use at a later date.
The report revealed that the State’s average disposable personal income figure has reached its highest level since 2009. Dublin, Limerick and Kildare are the only counties where per capita disposable income exceeded the state average in 2016 with Wicklow, Cork and Waterford, in order just below.
ODM Financial Advisers can help you increase your disposable income by advising on opportunities to earn an investment income.
Investment income is considered a form of passive income. We can support you with researching potential investments, building and maintaining your portfolio, etc. Investment income can come from stocks, bonds, property, or many other types of assets.
Creating income through investing is a process of accumulation. Even if you consistently get a return on investments (ROI) of 20%, if you only have €1,000 in the investment, you will add a little less than €200 to your yearly income after any fees and taxes have been paid (and there is no guarantee of consistent returns of even 10%). As you put more money in, however, more money comes out in the form of returns. Investing is a great way to increase your disposable income in the long run, but it won’t do wonders for your immediate situation unless you have a huge chunk of capital just sitting around. Investing takes patience, time and discipline (it is also subject to taxation).
Call or email us today:
+353 23 884 2700
Bank Place, Bandon, Co. Cork Ireland.
Kieran Hurley, QFA
Senior Financial Adviser & Head of Retail Sales