Fill in the Blank QuestionFill in the blank question.A good rule of thumb is to limit consumer payments to 20% of -tax income.

The phrase you're looking for is likely "disposable income."

So the complete sentence would be: "A good rule of thumb is to limit consumer payments to 20% of disposable income."

Explanation

Disposable income refers to the amount of money that households have available for spending and saving after income taxes have been accounted for. It's an important metric because it helps individuals and families assess their financial situations and make informed decisions regarding their spending habits. Limiting payments, such as credit card debt or loan repayments, to 20% of this income helps ensure that individuals do not overextend themselves financially, allowing for a balanced budget that accommodates essential living expenses and savings. This guideline is often advised by financial planners to promote fiscal responsibility and prevent the burden of excessive debt.