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Simple English definitions for legal terms
disposable earnings
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A quick definition of disposable earnings:
Disposable earnings refer to the money that a person has left over after paying taxes and other necessary expenses. This is the money that can be spent or saved as the person chooses. It includes income from employment, business, investments, and other sources. It is important to budget and manage disposable earnings wisely to achieve financial goals.A more thorough explanation:
Disposable earnings refer to the income that a person has left after paying taxes and other necessary expenses. This money can be used for spending or investing. It is also known as disposable income.
For example, if a person earns $50,000 per year and pays $10,000 in taxes and $30,000 in necessary expenses such as rent, food, and transportation, their disposable earnings would be $10,000.
Disposable earnings are important because they determine how much money a person has available for discretionary spending or saving. This can impact their quality of life and ability to achieve financial goals.