Selection of discretionary income


Make the most of your discretionary income

Discretionary income is what you have left after paying fixed costs. It is yours to spend on whatever you choose.


The way you spend this money can affect your financial situation, but before that we need to determine what the discretionary income is.

Rent / prices

Car driving costs



Groceries, etc.

People who have some addiction will spend priority so that the addiction is included in their fixed cost.

Everyone as an adult has the freedom to choose, unless there are no debts, which means that their freedom collapses in relation to the level of debt.

The old adage “The borrower is a slave to the lender” summarizes.

We all have some control over most of our fixed costs such as groceries and electricity; we can reduce it, but items like rates / rents are fixed, but even then we can choose to live in a more modest apartment or reduce it.

The excess of 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, hiring with a higher salary, or selling things online.

Saving your discretionary spending for some greater purpose, instead of spending it, gives your life some meaning. Instead of just letting things happen, you create things. Many people in 10-20 years wondered what happened.

There is a big difference between saving money and investing. Astute investors use their discretion to increase their wealth by investing in stocks and stocks with higher risk, gold and cryptocurrencies. There are enough online platforms on which you can put money for food if you are still climbing the investment ladder.

But then you may prefer to save for the holidays and mark one or two items on your bucket list. Closing the borders 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 backyard.

Among the most popular activities in New Zealand are landing on the Franz and Fox glaciers, going swimming in the hot pools of Hanmer Springs, visiting the Marlborough wine region or attending one of the sporting events across the country. Here I must mention the Tranz Alpine Express train journey between Christchurch and Greymouth. It has been rated one of the finest train journeys in the world, and I disagree with that. It has to be on everyone’s list.