Do I have leftover money each month? How should I spend it without overspending? discretionary, or leftover, income needs to be properly allocated in your budget. Take the time to figure out exactly how much you can spend on your monthly extras. This is where budgets often fail - but you can make yours a success!
Investopedia.com defines discretionary income as "the amount of an individual's income that is left for spending, investing, or saving after paying taxes and paying for personal necessities, such as food, shelter, and clothing. [It] includes money spent on luxury items, vacations, and nonessential goods and services."
I think that pretty much summed it up, so let’s review an example.