Discretionary spending is spending that a person would reduce if the money were needed for something else. There is a scale from highly discretionary spending (such as theater tickets) to spending that is not at all discretionary (utility bills, rent). FormFree continues to conduct research on the extent to which spending of different types is discretionary.
- General FAQs
What is discretionary spending?
What aspects of RIKI™ will change with further research?
What values does RIKI™ impose on borrowers’ behavior?
Does FormFree’s analysis make behavioral or demographic models of borrowers?
Does FormFree’s analysis use machine learning?
Does FormFree’s analysis use artificial intelligence?
Where does FormFree get the data to compute residual income and RIKI™?
Why aren’t residual income and RIKI™ reported for all borrowers?
Is RIKI™ affected by FICO score, location, home ownership, rent history (etc.)?
Why does FormFree’s software classify transactions?
What information goes into residual income and RIKI™ calculation?
What is adjusted residual income?
What is residual income?
How does FormFree measure ability to pay?
What is ability to pay?
Does RIKI™ replace other measures?
What is RIKI™?