5 Effective Ways to Spend Disposable Income

After you’ve paid your bills and monthly outgoings, you might have some disposable income that you’re left wondering what to do with. This is a fortunate position to be in, but one that many people find overwhelming because of the pressure associated with not knowing what to spend money on.

You don’t have to spend any money if you don’t want to, but if you already have most of things you’ll ever want and a good amount of money in savings, there’s no harm in looking at other effective ways you could spend disposable income.

We’ve put together five ideas of areas or things you could spend your money on if you’ve got some left over and are looking at good ways to spend it that will make a positive difference.

1. Donate to a charitable cause

The first thing you can spend your additional money on is the way which has the potential to make the biggest difference, and that is to donate to a charitable cause. There are literally thousands of causes that you could choose to donate to, ranging from researching treatments for rare types of cancer in your home country to an international feed the ummah appeal.

You can make a one-off donation with disposable income as and when you have it, or you can set up a monthly direct debit that automatically takes a fee every 30 days.

2. Pay off debts

If you have debts and disposable income, it’s a good idea to pay the debt off. You might have some outstanding car finance or a payment plan for a laptop or mobile phone. You might even have a loan – whatever it is, if you have outstanding finance, it’s a good idea to try and pay it off early.

This will work in your favor in terms of credit scores, and it will also reduce your monthly outgoings, standing you in good stead to save more money.

3. Save for retirement

Speaking of saving, if you have disposable income, it’s a good idea to save for your retirement. This will ensure you have a good amount of money for when you get older and want to stop working. You might think that your retirement is decades away, but it will come around quicker than you think, and you need to be prepared. You never know what the future holds, so whilst you’re able to secure it, it’s a good shout to do so.

4. Renovate your home

We’ve all been spending a lot more time at home recently, meaning we’ve all noticed small things about our homes that can be improved. Investing in your home is always a good idea because it will add value. You could save up to build an extension, fit a new kitchen, or buy a new appliance. If you don’t own your own home, you can still renovate it by buying new furniture that’s high quality and that will last you for years to come.

5. Hire a tutor

Knowledge is everything, so any steps you can take to improve yours are well worth it. You could spend your disposable income on hiring a tutor to learn something new, be it a new language or to improve on your math skills. If hiring a tutor for a new language isn’t for you, you could always hire a personal trainer instead. This will help you get fit and improve your wellbeing, and this in itself is one of the best investments you can make.


These are just five ways you can spend disposable income. Will you be trying any of these?

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