Legal Definitions - disposable earnings

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.