If you are budget minded, you are aware of the fact that disposable income is money from your current income that you can spend after taxes have been paid or accrued. Naturally, you will want to pay your living expenses first or provide for those expenses before you spend money for other items.

How much do you spend each month to remain healthy and alive? Are you saving any of your current earnings? Is your purpose for saving some of your money for long or short-term goals? To answer those questions you need to have a budget.

A short-term goal for saving some of your current disposable income might be used to pay for a vacation within the next year. That money might be used toward the purchase of a new or used mode of transportation. You might want to purchase a new computer or some other electronic appliance, furniture or any other item that you would not purchase on a regular basis.

A long-term goal for saving some of your current disposable income might be used for your eventual retirement from the workforce. That money might be put into a college fund for the education of your children. That money might be used for a down payment to purchase some kind of real estate like a personal residence or a business property.

No doubt, some of your current disposable income will be money that you will spend just for the fun of it, seeing a movie, dining out, gambling, or for other forms of entertainment or for a hobby or hobbies of interest. It has been said that a man or a woman cannot live on bread alone.

Gifts to a loved one are a must if you expect to be married, or you are married to that one special person. Such gifts can be given on those dates of importance during your association with that one special person.

The point here is that the money you earned belongs to you to use as you please. The purpose of making and following a budget is that you will know where and how you spent that earned income; and if you go deep into debt you will have no one to blame but yourself, right?

Like it or not you could end up homeless, or on the street with nothing to eat. That is why it is important to spend money for those things that you absolutely cannot live without and save the rest for some kind of emergency that has yet to happen. Bad things happen to everyone and as time passes something bad will happen to you.