Discretionary income choice

Get the most out of your discretionary income

Discretionary income is what you have left after paying a fixed cost. You can spend on what you choose.

But …
The way you spend this money can affect your financial situation, but before that we need to find out what is discretionary income.

Rent / betting

Car maintenance costs



Grocery, etc.

People with any kind of addiction will prioritize their spending so that addiction is included in their fixed costs.

Every adult has freedom of choice when he has no debts, which means that their freedom is eroded depending on the level of debt.

Summarizes the old saying: “The borrower – the slave of the lender.”

We all have some control over most of our fixed costs such as food and electricity; we can cut them, but with items like rates / rent fixed, but even then we can choose to live in a more modest apartment or reduce the size.

Exceeding your expenses is called discretionary income.

Another way to increase your disposable (discretionary) income is to increase your income by getting a part-time job, getting a higher paying job or selling things online.

Keeping your discretionary expenses for some bigger goals, instead of spending them, gives your life a certain meaning. Instead of just letting things happen, you do it. Many people after 10-20 years wondered what had happened.

There is a big difference between saving your money and investing it. Astute investors use their judgment to increase their wealth by investing in riskier stocks and stocks, gold and cryptocurrencies. There are plenty of online platforms where you can invest in these things if you are still climbing the investment ladder.

But then you may prefer to save on vacation and mark one or two items on your list. Closing the border will limit your choice of places, but here in New Zealand, there are so many fantastic places to visit that it is an opportunity to discover your own backyard.

Among the most popular activities in New Zealand – landing on the glaciers of Franz and Fox, dive into the hot pools of Hanmer Springs, visit the wine region of Marlborough or visit one of the sporting events across the country. One thing I have to mention is the Tranz Alpine Express train ride between Christchurch and Greymouth. It’s considered one of the best train journeys in the world, and having survived that, I don’t mind. It should be on everyone’s list.