What term describes the amount of cash a person or household has left after taxes and bills have been paid?

The term that describes the amount of cash a person or household has left after taxes and bills have been paid is disposable income. Disposable income represents the funds available for spending or saving after all necessary expenses, such as taxes and essential bills, have been deducted. This is a crucial measure for understanding an individual's or household's financial health, as it indicates how much money can be used for discretionary spending—such as entertainment, non-essential purchases, or savings—thus reflecting the economic well-being of the individual or household.

In this context, net income is often mistakenly thought to mean the same thing, but it specifically refers to the total income after all expenses and deductions, which may include taxes but isn't limited to just discretionary funds. Gross income, on the other hand, refers to the total income earned before any deductions or taxes, giving a broader view of earnings but not reflecting what is actually available for spending. Operational income usually pertains to a company's earnings from its core business operations, which is not applicable in this personal finance scenario.