Are you using your spare cash in the best way?

May 14th 2018 | Categories: Budgeting & Goals |

Father and son swimming happiness discretionary income

Working to a budget, you’ll have a certain amount of money left over once you’ve paid your fixed expenses. Do you have a plan for how you’ll use this money, or are you spending it on the fly?

Spending money on things you can enjoy in the moment, of course, makes you at least fleetingly happy. Likewise, you feel happy when you’ve managed to overcome a struggle such as paying off debts. So often people attribute happiness with the endorphins felt in making a purchase or the sense of pride experienced after accomplishing something. However, there are ways you can manage your money that will contribute to a lasting, ongoing happiness where you’re content with the process of earning what’s important to you.

Are you managing your discretionary income wisely? Get in touch with us today and find out to get the most out of the spare cash you have.

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1. Build up your savings

It doesn’t matter what you’re saving for, if you’re able to regularly increase the balance of your savings account you’ll likely feel a continued sense of pride. In part this is because, yes, you’ll be able to buy something that you really want! But if you’re saving smartly, you’ll also have a buffer that can provide financial resilience, protecting you from sudden expenses and ultimately reducing financial stress.

family taking a picture on vacation happiness discretionary income
Save up for a family vacation to spend your discretionary income for the better.

2. Take a vacation

Use your money to look after yourself and spend some time with the most important people of all – your family. Taking the family on vacation gives you a chance to really connect with them, free from the stresses of your day-to-day life. Furthermore, holidays have been found to have lasting health benefits. The Holiday Health Report, a UK-based survey run by Nuffield Health and Kuoni, found that vacations can have benefits lasting at least two weeks after the holiday including:

3. Invest in your home

We’re not just talking about paying off your mortgage. Investing in the improvement of your house can help you feel more personally connected to the space, establishing a stronger sense of home. Furthermore, updating windows and insulation can reduce your bottom line.

girl inside home library happiness discretionary income
Making your house feel more like home is never a bad idea.

4. Become debt-free

Paying off debts early is definitely the least fun way to spend your discretionary income. That said, it can really make a difference in the long run. Besides building on the pride felt in successfully managing your money, paying more to your debts than required can reduce the total interest you pay, meaning you’ll have more money for savings and holidays.

5. Seek financial planning

By actively seeking financial planning advice, you’ll get to work hand in hand with a professional who is genuinely invested in your happiness.


Tell us what you think

At Invest Blue we are interested to learn more about how we can help the conversation around money. If you have 5 minutes we would love to hear your perspective. Tell us your views on the money conversation here.


We’ll work to understand your goals and develop financial strategies that contribute to a long, happy life. Get in touch with us today to find out more.

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What you need to know

This information is provided by Invest Blue Pty Ltd (ABN 91 100 874 744). The information contained in this article is of general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regards to those matters and seek personal financial, tax and/or legal advice prior to acting on this information. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relations to products and services provided to you.