Disposable Income – How Not to Throw it Away

disposable incomeIn the current financial and economic climate, we all have to be a lot more careful about how much we spend and what we spend it on. It can be all too tempting for those who find themselves with disposable income each month to splash out and treat themselves on a regular basis. However, you have to also think about the future and try to put some of your disposable income away rather than throwing it away on items that you don’t need.

Of course, when you work hard to earn your money there is nothing wrong with treating yourself now and again. However, you simply need to think smart in order to ensure that you do not end up wasting your disposable income unnecessarily.

Ways in which to avoid wasting your disposable income

There are a number of ways in which you can avoid wasting your disposable income and could even boost your savings on a month-to-month basis. Some of the ways in which you can avoid wasting money by cutting back on spending include the following.

Set up a direct debit into savings: Many people find that if they have money burning a hole in their pocket they end up spending it, often on items that they do not need. By arranging a standing order or direct debit directly to your savings account each month, you can avoid having money just sitting there tempting you and instead watch your savings account grow month by month.

Shop around for everything: There is nothing wrong with treating yourself out of your disposable income. However, make sure you shop around to get the best deals. From clothing such as girls’ party dresses and casual wear through to gadgets and devices such as tablets and mobiles, you will find some great deals out there. All you need to do is find them in order to make big savings. Even if you are planning a big treat such as a holiday, take time to shop around or wait for special deals.

Look at cheaper forms of entertainment: We all need to relax and enjoy some downtime now and again. However, finding cheaper forms of entertainment could mean you spend less and save more. For example, rather than taking the family out to the cinema and paying for each person to see a movie, enjoy a DVD night at home. You can buy some popcorn and other treats at a fraction of the price you will pay while at the actual cinema. Likewise, rather than heading out for a romantic meal, enjoy a home-cooked one by candlelight with some romantic tunes playing in the background – just as intimate but cheaper and with added privacy.

These are just a few of the ways in which you can avoid spending more of your disposable income than you need to.

About Christopher


  1. I definitely shop around a lot. Prices can vary so much!

  2. I don’t buy anything without shopping around. With everything at your fingertips only it only takes a short amount of time to find out competitors prices.

  3. We’ve done the automated debit to our savings account at the end of the month and it works great for us. I know if the money is left in our checking account it will be a temptation to spend it.

  4. I am very value conscious or frugal and I want the most for my money. I use my money to max out the value by shopping at discount stores etc.

  5. Direct debit and automation is key. It cuts down on my disposable income, but I still have it.

  6. Automated payments for increased mortgage payments, or even an automated savings account that you can then use to invest are good ways of forcing yourself to form certain habits.

  7. Whenever I buy something other then things like groceries or gas I usually do tons of research and price comparisons. It often pays to take the extra time to shop around as you can save big money. With the smart phone apps and internet access anywhere you go there’s really no reason not to price compare.

  8. I’ve been teaching myself to do this over the past few months. It’s hard to not go out and splurge a bit when I get my paycheck, but I can’t just go and waste money because I can. I have a future education to think about, as well as my independence. Every paycheck, I take what I need for my bills, put a hundred or so in a savings account, and the rest in my checking. This keeps me from accidentally dipping into my savings and keeps me on a budget. Speaking of, I’ve been looking into free entertainment lately and even when admission is free, the drinks are not, so I leave my credit card at home and bring a couple of 20’s. That way, if I do run low, I won’t be tempted to spend more than I should.

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