Discretionary income choices


Maximize your prudent earnings

Discretionary income is what you leave after paying your scheduled expenses. It’s up to you to decide what you like.

However …

How you spend this money can make a difference in your financial situation, but first we need to determine what our discretionary income is.

Rent / Rate

The cost of driving



Groceries etc.

People who have some kind of addiction will give priority to their expenses so that the addiction is included in their specific expenses.

As adults, everyone has the freedom to choose unless they have debts, which means their freedom is diminishing with the level of freedom.

The old saying goes, “or the recipient is the slave of the giver.”

We all have some control over most of our fixed expenses like money and electricity; We can reduce these but with the rate / rent fixed items we can choose more modest apartments or downsize.

The extra amount you spend is called discretionary income.

Another way to increase your disposable (prudent) income is to increase your income by getting a part-time job, getting a higher paying job, or selling things online.

Your prudent spending gives your life some meaning instead of making it a little bigger than a jolt. Instead of just letting things happen, you are making things happen. Over a period of 10-20 years many people wonder what happened.

There is a major difference between saving your money and investing it. Ultimate investors use their prudence to increase their wealth by investing in high risk stocks and shares, gold and cryptocurrencies. There are ample online platforms where if you keep climbing the investment ladder you are able to drop feed money on these things.

However you can choose to save on the holidays and tick one or two items on your bucket list. Closing the border will limit your choice of places but there are so many wonderful places to visit here in New Zealand it is your chance to discover your own backyard.

Some of New Zealand’s most popular activities are diving into the Franz and Fox glaciers, diving into the Hanmar Springs hot pools, visiting the wine region of Marlborough or attending one of the sports meetings across the country. I would like to mention one thing here, the Trans Alpine Express train journey between Christchurch and Grimmoth. It has been hailed as one of the best train journeys in the world and I do not disagree with its experience. It should be on everyone’s bucket list.