What Is Disposable Income Definition and Examples

If you have money left over after paying your taxes, congratulations! You have â€Å"disposable income.† But don’t go on a spending spree yet. Just because you have disposable income does not mean you also have â€Å"discretionary income.† Of all the terms in personal finance and budgeting, these are two of the most important. Understanding what disposable income and discretionary income are and how they differ is the key to creating and living comfortably within a manageable budget. Key Takeaways: Discretionary Invome Disposable income is the amount of money you have left over from your total annual income after paying federal, state, and local taxes. Discretionary income is the amount of you have left over after paying all taxes and paying for all necessities of life like housing, healthcare, and clothing. Discretionary income can either be saved or spent on non-essential things like travel and entertainment. Levels of disposable and discretionary income are key indicators of the health of a nation’s economy. Disposable Income Definition Disposable income, also known as disposable personal income (DPI) or net pay, is the amount of money you have left over from your total annual income after paying all direct federal, state, and local taxes. For example, a family with an annual household income of $90,000 that pays $20,000 in taxes has a net disposable income of $70,000 ($90,000 - $20,000). Economists use disposable income to identify nationwide trends in households’ savings and spending habits. The average disposable personal income (DPI) in the United States is about $44,000 per household, according to the international Organisation for Economic Co-operation and Development (OECD). The DPI in the U.S is far higher than the average of $31,000 among the 36 nations surveyed by the OECD. It should be noted that indirect taxes, such as sales taxes and value-added taxes (VATs) are not used in calculating disposable income. While they do generally reduce effective spending power, they are extremely difficult for individuals to track. Apart from personal finances, disposable income is also important to the national economy. For example, the United States federal government uses it to measure consumer spending and the all-important Consumer Price Index (CPI)—the average nationwide price of various goods and services. As a key indicator of inflation, deflation or stagflation, the CPI is a critical measure of the health of the nation’s economy. Disposable Income vs. Discretionary Income Just because you have money left after paying taxes, be very careful how fast you spend it. Disposable income must not be confused with discretionary income, and disregarding the difference between the two can make or break your budget. Discretionary income is the amount of money you have left over from your total annual income after paying all taxes and after paying for necessities like rent, mortgage payments, healthcare, food, clothing, and transportation. In other words, discretionary income is disposable income minus the unavoidable costs of living. For example, the same family that had $70,000 in disposable income left after paying $20,000 of taxes on its $90,000 of gross income also had to pay: $20,000 for rent;$10,000 for groceries and healthcare;$5,000 for utilities;$5,000 for clothing; and$5,000 for car loan payments, fuel, fees, and maintenance As a result, the family paid a total of $45,000 on necessities, leaving them with only $25,000 ($70,000 - $45,000) in discretionary income. In general, families or individuals can do two things with discretionary income: save it or spend it. Sometimes called â€Å"mad money,† discretionary income can be spent on all the things you might want, but not really need for anything other than â€Å"keeping up with the Joneses,† perhaps. Discretionary income is typically spent on things like eating out, travel, boats, RVs, investments, and thousands of other things we really could â€Å"live without.† The general rule is that within the same household, disposable income should always be higher than discretionary income because the cost of necessary items has not yet been subtracted from the amount of disposable income. According to the consumer credit reporting agency Experian, the average American family spends about 28% of its total pretax income—more than $12,000 per year—on discretionary items. The Tight Bottom Line   According to the U.S. Census Bureau, the average American household brought in nearly $75,000 before taxes in 2016 but ended up spending most of it. In fact, after subtracting all the money it pays in taxes, necessary good and services, and discretionary purchases, the average U.S. household spends more than 90% of its income. After subtracting all taxes and other expenditures from its $74,664 annual pretax income, the average American household has $6,863 left over. However, since interest paid on consumer debts such as credit cards and car loans are not subtracted from pretax income, the amount of money the average household has left for savings or discretionary spending is typically far lower than this. So, be careful with the plastic. Sources and Further Reading Disposable Income (2018). Investopedia.comDiscretionary Income (2018). Investopedia.comHousehold Income: 2017. U.S. Census BureauOECD Better Life Index. Organisation for Economic Co-operation and DevelopmentConsumer Spending Data. Experian.comPatoka, Josh. How to Optimize Your Disposable Income and What Should You Do With It? The Finance Genie

Gregor Samsa Essay - 1280 Words

Franz Kafka writes Gregor Samsa in his novel The Metamorphosis to portray specific details of his childhood life. In the early 1900’s the Great Depression occurred which changed the romantic time period into the modernism that focused on grotesque imagery. The Great Depression caused people to appreciate their beautiful world, before it turned into the dark and gloomy atmosphere it was for ten years. Kafka and Gregor’s lives share the similarity that both of their fathers were aggressive, alienating and powerful in their son s lives. In the novel The Metamorphosis by Franz Kafka, Kafka reflects his life using his main character Gregor Samsa as a representation to display how disconnected his father and his relationship was as a child. In†¦show more content†¦This dark unemployment time portrayed the grotesque imagery, which modernism consists of (Great Depression). The realistic details of how families were separated and how many households have been dissolved highlights how this time period is transformed into modernism. Modernism portrays the idea of â€Å"The world is what we say it is†, and there is no absolute truth. This movement is based on alienation, loss, and despair that also focuses on self-consciousness and irony. Modernism displays realistic details with grotesque imagery (Quema). The elements of the gothic in romanticism are switched into horrid writing, which includes the stream of consciousness writing. Franz Kafka uses modernism in his writing when his main character Gregor Samsa transforms into a human size beetle, but uses irony so that when he wakes up his only concern is getting to work on time and not worrying about what he has transformed into overnight. Gregor Samsa is also alienated from his family and even beat into his room at times, which shows the grotesque imagery that modernism focuses on. Franz Kafka grew up in a situation similar to Gregor Samsa. Franz Kafka has three sisters and was born into a Je wish family. His father was born poor and his mother was born with money. Their family was self assertive and their fathers are both powerful, aggressive, and alienative. Franz Kafka was weak and wanted to be away from his fatherShow MoreRelatedEssay The Sins of Gregor Samsa of Franz Kafka’s The Metamorphosis2749 Words   |  11 PagesThe Sins of Gregor Samsa of Franz Kafka’s The Metamorphosis Gregor Samsa’s crimes originate from his intense devotion to his family, and thus in his intense devotion to his work, which in turn makes him intently devout to the conformist society that creates his world. Gregor’s crimes are not of the scope that contains what one may consider normal or standard crimes, and his motivations come from a separate set of values than those that society would consider to be the median. As a result ofRead MoreThe Unselfish Gregor Samsa in The Metamorphosis Essay example1406 Words   |  6 PagesThe Unselfish Gregor Samsa In Franz Kafkas The Metamorphosis, some might argue that Gregor was a terrible person and his metamorphosis was not real, but only an illustration of the terrible person he had become. However, it can much more strongly be argued that he was an extremely unselfish person and his actions were largely taken for granted by his family. Kafka was emphasizing the common practice of selfless actions being unappreciated through his story of Gregor and his family. One wayRead MoreThe Dehumanizing Effect of Alienation and the Restoration of Self Identity in Franz Kafka’s The Metamorphosis788 Words   |  3 Pagesthe main character Gregor Samsa, who inevitably transforms into a giant cockroach. The alienation by family relations affects him to the extent that he prioritizes his extensive need to be the family’s provider before his own well-being. 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While both works convey the ideas that a human s situation in life is always temporary, lust leads to unfavorable circumstances, and that the stubbornRead MoreAnalysis Of On Dumpster Diving Essay1671 Words   |  7 PagesEnglish 101 Final Essay Q1: Discuss the contemporary issues in every essay A) A contemporary problem raised in â€Å"On Dumpster Diving† by Lars Eighner Is the amount of wealth spent by consumers, and the effect of that. Consumers spend too much money and waste even more when they throw food and clothing away. In the essay he explains the way of life as an scavenger and how to demonstrate how people are able to live by the minimal resources although most consumers continue to buy things they do not needRead MoreThe Kafka s About Gregor And His Metamorphosis997 Words   |  4 PagesThe novella about Gregor and his metamorphosis is story of intolerance, and isolation. 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China’s One Child Policy Free Essays

string(82) " counts have been restarted in 1975 they have never been referred to as reliable\." The policy was put onto place In 1979 as â€Å"an aggressive effort to Improve standards of living and the economy through population control† (CNN). The initial policy that was put into place was much stricter than the policy most people are familiar with now. This is because the original plan was meant to be short-term (only a couple of decades), however it’s success of preventing nearly 400 million births made China leaders think twice about terminating the plan altogether and instead revised the policy Into what it is today (CNN). We will write a custom essay sample on China’s One Child Policy or any similar topic only for you Order Now This essay will be breaking down the one child policy by looking Into a variety f different aspects such as; the company that oversees the policy and what rewards or punishments they hand out, the baby boomers effect on the policy and the reason the leaders implemented it, and prior attempts to control the population. As well as the current population standings, the well-known daughter to son ratio problem, how it affected one families plan, and current feelings by the locals towards the policy. The one-child policy Is known by those that abide by It as the â€Å"family planning policy. Understanding the policy In China Is difficult as there are many exceptions and rules. The family planning policy states that married urban couples are only allowed one child. However, exceptions include rural families, ethnic minorities, couples who themselves only have one sibling, and foreigners residing in China. According to Maria Trichina, the NIFOC (The National Population and Family Planning Commission of China), Is a state agency responsible for overseeing population control, reproductive health and family planning across China. The NIFOC was created to help families make decisions about their child, designate rewards to abiding families, and enforce penalties when it is disobeyed. Everyone who falls under the policy in China is personally responsible to practice family planning and use proper contraceptive methods. Those that play by the rules are offered a number of perks such as special financial assistance, longer maternity and honeymoon breaks, â€Å"Certificate of Honor for Single-Child Parents,† loans, along with other rewards. Those that disobey the strict law can be fined up to half of their annual household income or be subject to confiscation of their household items. The â€Å"excess† children themselves may personally be subject to health and education disadvantages. Trichina) All of these penalties and rewards make having a single child very attractive and make most couples not even consider having a second child. The way the policy is set up Is very smart and lucrative, making nearly 97% of the country follow It’s guidelines. Hays) 1979 as the â€Å"baby boomers† of the sass’s and ass’s were beginning to reproduce. The reason for the sudden worry of the population in China came when leaders realized that China was home to a quarter of the world’s population on Just 7 percent of the world’s land (Hester). The population increase during the sass through 1979 introduced a large number of problems in China. With such a rapid increase, came the governmentà ¢â‚¬â„¢s inability to provide for its citizens the way China’s citizens were used to the way that was previously possible. Also, leadership argued that rapid population growth would â€Å"retard achievement of the four modernization (industry, agriculture, science and technology, and defense) by hampering attainment of full employment and by cutting into increases in capital accumulation, living standards, and education† (Bonaparte) The rule was implemented in order to return the country AAA higher standard of living, education, and economic reform. Because the long term effects of the policy have not been felt and there are still a number of people in China that were born before the policy, it is uncertain if China’s goals to make a better life for its citizens have been fulfilled. Judging by the number of children born under the one child policy that plan to follow it with their own families, the policy obviously has its perks. But before this law was enforced, a number of other options were attempted. A number of other options were researched and attempted before the law went into effect, many failed efforts to control the population took place. Although the policy seems harsh, the one child policy was not implemented on a whim. In 1971 the Chinese government introduced a birth-limitation campaign called â€Å"longer-later- fewer. † In this plan men and women would have longer periods between the births of their children, wait until they were older to have their first child, and have fewer than the average children. Fewer than average was three children if you were a rural dwelling couple and 2 for those in the Urbana (Bonaparte). Due to the lack of success f that program, the decision was made to limit couples to having Just two children in the year 1977, followed by Just one child in 1979. China will maintain its one-child policy for at least another decade as nearly 200 million Chinese will enter child- bearing age over the next 10 years. Minister Ghana Weighing told the China Daily newspaper, abandoning the policy during this period would cause â€Å"serious problems and add extra pressure on social and economic development. However, the exact details of the continued policy will be less strict and will include exceptions and options such as being able to apply for certificates to allow the birth of a second child. Another revision of the policy has not yet been started, however the grip is a lot less tight and more families are able to have more than one child while still following the rules, and falling under the exceptions. The successes of the policy can be seen in the current population standings ver sus where the country was headed prior to the policy beginning. It is hard to reflect what the exact population goals were and what the current population is as a number of sources contradict each other yet each claim to be en discontinued in China in the late sass and since population counts have been restarted in 1975 they have never been referred to as reliable. You read "China’s One Child Policy" in category "Papers" This shows that the population goal was not set in stone and that the actual population in China is unknown. According to sources, the estimated population in China has been continually growing since 1953 when the death rate began falling significantly and the birthrate increased, creating a 2. 8 percent population growth rate. The increase was initially embraced by the public and the leaders of China saw the population growth as part of the countries strength. A growing population following hundreds of years of war, epidemics, rebellions and the collapse of imperial authority was a welcomed change. (Kane) However, when the reality of the increasing population hit home and the effects of the growing population started effecting communities, the policy began being designed. When it was introduced, it is said the leaders had a goal in mind; in 1979 they hoped the population of China, in the year 2000, would be at approximately 1. Billion. The 2000 census showed the population at 1. 27 billion, however many people argue that this is an underestimate because the census neuters in China is the same committee that is meant to be in charge of population control. Whether the population actually decreased or not is hard to say, but what has been proven is that per woman, the fertility rate has dropped from 2. 9 chil dren, down to 1. 7. (Hester) China’s population, which now stands at about 1. 3 billion, is growing at the rate of 0. 6 percent and is expected to peak around 1. 6 billion by 2050, according to the U. S. State Department. CNN) Following the peak, it is expected to drop off drastically resulting in the population numbers desired by leaders in China. As a whole, the policy has helped prevent approximately 250 million births since 1979. The greatest difference in population has come from those in urban areas, as those in rural settings are less keen on the rule. Although the rule only officially applies to those living in urban areas, couples in rural landscapes are also advised and sometimes pressured to follow the one child policy as well. Even before the rule went into effect, nearly 90% of urban couples had already decided to have only one child. This was in part due to the small living spaces and the hours Chinese workers are expected to put into a Job. Add to that the exhausting tasks of caring for a family and the majority of couples can’t fathom having more than one child. Rural families, on the other hand, need larger families to financially support them as they grow older as they tend to have limited savings and no pensions (Kane). Discouragements of larger families include â€Å"financial levies on each additional child and sanctions which ranged from social pressure to curtailed career prospects for those in government Jobs† (Kane). Specific measures varied across each individual community, but in a tight knit community, the pressure o adhere to the one-child policy is high. Having what they call â€Å"unapproved pregnancies† which are children that are not approved by the family planning authorities, can bring problems to more than Just the defiant family. For example, if a couple was to have an unapproved pregnancy in a community and this birth caused the community to exceed the yearly birth quota, then other families who had previously been approved to have a child, would have to wait until the next year and families in China. Not only do families feel pressure in having children, they also feel pressure in the gender of the child they have. A well-known effect caused by the one child policy in China, is the preference of having a son over a daughter. Before the policy was implemented, the ratio was about 105 males to every 100 females overall in China, but currently the ratio stands at 114 males to every 100 females. The desire to have a son rather than a daughter is due to the tradition that in the parents’ old age, the daughter moves in with the parents of the son to care for them. In the event that a daughter is born instead off son, families abiding by the one child rule, more often peasants, dispose of the infant RL and try again, this time hoping for a son. This practice is called sex selective infanticide. Another well-known reason to dispose of the daughter is so that when the child grows up and tries to start a family, the families’ last name tied with the daughter won’t have a chance to be tarnished by a daughter breaking the one child policy. Beliefs in China are that an infant does not own life until they are six months old; therefore getting rid of the infant daughter is not seen as a crime. The method used, most commonly by the father, is to place the infant in a bucket of cold water that Chinese refer to as â€Å"baby water†. In a study done in 1980, for every 1000 infants being born across China, 53 were being disposed of, but in the rural areas of the country, the ratio was much higher (Kane). In some communities of China, one out of every three daughters born are disposed of. The boy to girl ratio proves to be troubling for China in the future, but as of now, no measures are being taken to prevent this common practice. Families struggle to decide whether to keep the daughter or try again for another, in hopes that it is a boy. Many people were frustrated when the rule was set in place in 1979. Going from the â€Å"longer-later- ewer† rule that did allow more than one child, Just a certain amount of space between each birth (usually 3 years), to having Just one child, ruined a lot of couple’s family plans. Especially those who had already had one child, a girl, and were planning on trying again later for a boy. Most couples had to accept the plan and were â€Å"plagued† with the reality that their one child would be a girl and would likely leave them in their old age. But some couples broke the new rule, and tried for a son. Penalties faced for having another child included losing workforce â€Å"points† and even personal belongings. Some locals surveyed say it was worth it, but others, who had a daughter a second time, are now even more devastated. The only way to gain back those points and reclaim their confiscated items is for the woman to be permanently fixed by a licensed doctor. Almost all couples breaking the rule and having a second child are forced to undergo such procedures. For traditional families, it can be heartbreaking. However, for a number of more modern families, the policy is becoming understood and even accepted. Some say having only one child ensures better care, including better nutrition, dress, education, and more attention. These modern couples embrace the one child rule, understanding that â€Å"the best care can be given to a child when there is only one child to care for† (Ghana). Modern couples understand the policy and some even chose to undergo the procedure after their first child to avoid being punished. These are the government or NIFOC. While there are some that agree and abide, there are still some that will fight it until it is taken out of practice. Those that fight it may not be beneficiaries of some of the positive results the policy has produced. Even some of the only daughters are enjoying benefits that, without the policy, would not have existed. Since the policy implementation over 30 years ago, a number of children born under the one child policy are now adults. Feelings towards the policy are across the board, but the statistics are not. A number of studies done show that children born under the policy, especially girls, tend to have a better life than those with multiple siblings. One obvious reason for that is the family with one child is not scolded by the government with fees, income confiscation and other humiliations. But in the studies there are other reasons that children are better off as an only child. For example, â€Å"many one child families are made of two parents and one gather. With no male heir competing for resources, parents have spent more on their daughters’ education and well-being, a groundbreaking shift after centuries of discrimination† says Jeffery Hays, an expert on the one child policy. In 1978, women made up only 24. 2 percent of the student population at Chinese colleges and universities. By 2009, nearly half of China’s full-time undergraduates were women and 47 percent of graduate students were female, according to the National Bureau of Statistics. (Hays) This is the first time in China’s history that school enrollment between males and females are near equal. So, although the policy might be hard to understand and frowned upon by many, the statistics can’t be denied, having Just one child in China ensures that child a better life. In studying and reading of the family planning policy in China I believe that it is a very difficult rule to dissect. There are obvious reasons that the policy was set into place, and had it not been implemented, the population of China would have far outgrown the resources that country has to offer. I think the biggest issue that comes into play is the tradition of sons moving in with their parents to care for them. This is the largest reason that the surviving birth rate of females is so low and males is so high. It is hard to say to abandon the tradition and have elderly care in a home or find another way, however in China, the act of a tradition so strong between families it makes that idea unrealistic. I do think that something needs to be done that alters the tradition into something that welcomes both males and females into the world before China is overrun by males and the men to women ratio is even worse than it currently is. Overall I think the policy had to happen and it would not be horrible if other entries took this idea into consideration. How to cite China’s One Child Policy, Papers

Cultural Differences Essay Example For Students

Cultural Differences Essay Many students expand their view of the world during their time in college. Such growth often results from encounters between students who have lived different cultural, economic, or academic experiences. With your future growth in mind, describe a potential classmate that you believe you could learn from either within or outside a formal classroom. It is a small world after all. Going to different states, cities, or even just around your local neighborhood, you can find many different people and cultures. American society is filled with culturally diverse people who open us up to a new way of thinking and help us perceive other nations with a less myopic view. As a culturally diverse person like myself, I have always enjoyed learning about others and their background. A plethora of information can overwhelm my mind just by chatting with someone who is diverse culturally, academically, and economically. In the same way I have encountered a similar experience in high school that has changed my understanding of the Chinese heritage. My first interaction with another culture was when I met my close friend, Ying Ching from China, who opened doors to a new part of the world for me. The major difference between us was our religion. Her religion, Buddhism, the predominant religion in China, has teachings based on polytheism. In contrast to my religion, Islam, which is strictly monotheistic. Once I informed her that I go to Jamat Khana my church everyday and she was surprised because she only attends her temple once a week. She then told me her family practiced religion on a daily basis back in China, but because she is from a Communist country that suppresses any sort of religion, she and her family had to endure many hardships. Not only did we try to understand each others religion, but also the languages, food, and customs of our different cultures. Sometimes, just for fun we would translate a word or a phrase in on anothers language. I have invited Ying over for a traditional family dinner and introduced several food items from my country. I even tried to teach her a traditional Pakistani dance called Rasara, which we practiced for hours. Once she brought me one of her traditional pork dish called Yangzhou and I had to explain to her that as a Muslim I can not eat pork. Ill never forget the time she taught me how to use chopsticks. I was so frustrated! The friendship between Ying and I has taught us to not only accept our culture but other cultures as well. College is not only about furthering your education, it is also learning about others and their cultures also, appreciating others as they are. I can envision myself exploring other cultures of the world without leaving the United States. I am cognizant that extremely few students get a chance to experience the world and its cultures first hand. With a culturally diverse campus like yours, meeting someone  of that caliber described in my essay will expose my intellect to new waves of thoughts. It will not only enhance my learning, but it will make me a person who can better adapt in the global environment. I could rest assure that no matter where I go, I will be able to live and work in collaboration and harmony with the member of that society.