The Burden of Disposable Income

Disposable income is generally regarded as good news. It is what remains after taxes and necessities, and it is, by definition, available. Yet available is not the same as understood. Money without an assigned purpose tends to be either spent without much notice or held without much confidence.

This is a legitimate difficulty, and a modest one. It is usually resolved not by earning more or spending less, but by knowing what the figure actually is: what arrives, what is committed, what is expected, and what ought to be retained.

The nature of the burden

The Institute has observed that unallocated liquidity presents itself in familiar ways. A balance that seems larger than it should. A reluctance to look at it too closely. A vague sense that it is meant for something, without clarity as to what. None of these are emergencies. They are, however, burdens of attention, and attention is not unlimited.

The remedy is clarity. Once obligations, anticipated expenses and a reserve have been accounted for, what remains can be regarded calmly. For most people, it will be directed toward savings, investment, debt reduction, generosity or simple enjoyment, at their own discretion and on their own advice.

On relief

The Institute offers relief to those who find the burden of excess liquidity unsustainable. It should be said directly: this relief is a voluntary, one-time payment to Bozarth Software LLC, the operator of this service. It is not an investment, a deposit, a savings product or a managed account, and it creates no expectation of return. The Institute does not manage money and does not provide financial advice.

Nor does the Institute suggest that anyone should give away their surplus. The overwhelming majority of excess liquidity is best left with its owner, who is almost always better placed to decide its future. We merely note that, should the burden become intolerable, relief is available. It may be partial. We understand.