How to Make Good Use of Your Disposable Income


Any normal working adult could benefit from having a little more disposable income. Often, the problem with this is that full-time jobs pay a fixed amount every month, leaving little room to allot your money in other pursuits. It also leaves you seeking to do more and earn more.

The more disposable income you have on hand, the easier it will be to save money and invest to achieve your short- and long-term goals. The amount of net income you have is also a good gauge of your wealth.

You don’t have to stay tied to only one source of income in your professional career. There are ways to invest your disposable income in order to increase it and let you live a more comfortable life where your goals are more attainable.

Four Ways to Grow Your Disposable Income

Here are some of the smartest ways to make good use of your disposable income.

1. Start Your Own Business

Instead of spending your money or just keeping it in a bank account, open your own business for another source of income. You can start with a small business, taking advantage of your skills to offer products or services to other people.

Before drawing a business plan, it helps to take an inventory of your skill set. This acts as a list of potential businesses you can go with. You should also take note of the people you can work with to gain a clearer picture of what you can do.

You can also take the franchising route. It will be easier to franchise a business that you have some familiarity with for an easier transition. An example is if you have experience working at a restaurant, franchising a restaurant will not be foreign territory to you.

You can also choose a franchise that goes well with your current skill set. Put your handiness to good use by franchising a lawn care service or another service-based business that lets you monetize what you’re good at.

small business owner

2. Try out a Side Hustle

The sky’s the limit for remote side hustles in this day and age.

With how the pandemic is reshaping business setups everywhere, finding a side hustle has never been easier. There are numerous opportunities online in which to find jobs that you can do remotely.

Browse through listings on various job-searching websites to use your free time on some freelance work. You can even filter listings on some websites to specify a salary range that is agreeable to you.

There are also unique ways to remotely earn money that you may not have heard of before. Websites such as EyeEm let you sell your pictures to be used as stock photos. If you produce projects such as video content or visual art, you can earn money from patrons’ donations on Patreon.

3. Invest in a Property

This often requires a longer period of saving your disposable income or borrowing some money from your savings, but a property is a potentially valuable asset and investment. Purchase a property in a good location so that you can monetize it.

One way is to turn it into a rental property for long-term tenants or even short-term stays. After a few years of renting it out, you can either continue or increase your earnings by selling the house once it has appreciated in value. You can also buy an old property for a cheaper price and then sell it for higher after making renovations.

4. Budget Your Money Well

Your disposable income will not have any room to grow if you carelessly spend it on things you don’t need. Even when your disposable income is a “comfortable” amount, it is no excuse to just let wise budgeting, saving, and investing take a backseat.

This is the simplest way to keep from depleting your disposable income, but it is not always the easiest. Foregoing some of life’s luxuries is not an easy task, after all. But remind yourself that a good budget that prioritizes saving makes you comfortable in that it gives you peace of mind to have money in your accounts and your debts paid off.

Feel Free to Celebrate, But Do It Wisely

Don’t eliminate the practice of celebrating when you have the means to. When you accomplish something at work or have a good month earning from your business or side hustles, by all means, celebrate your hard-earned victories.

Just always remember not to take treating yourself as an excuse to be irresponsible. Enjoy little luxuries once in a while, but do so in a way that honors your budget.

Scroll to Top