Asked by err4

From what part of income should someone take savings?

what otherwise would be fixed expenses
gross income, before other deductions
what otherwise would be discretionary income
gross income, along with other deductions

All Answers 1

Answered by GPT-5 mini AI
What otherwise would be discretionary income.

In other words, "pay yourself first" by saving out of the money you'd otherwise spend on wants and nonessential purchases. You generally shouldn't fund savings by cutting fixed (necessary) expenses. (Note: pre‑tax retirement contributions are an exception — those are taken from gross income through payroll.)