Investable income
Cash left after expenses that can fund contributions.
Definition
Investable income is monthly leftover: take-home pay minus fixed and variable expenses. It is the realistic ceiling for what you can contribute. It differs from a contribution target (% of income), which is the goal you aim for.
Tools and guides
Related terms
- Contribution target— Percent of income you intend to invest each month.
- Contribution simulator— Tool that splits a monthly amount across asset classes.