Your disposable income is all the money you have left after you have paid your essential costs and put aside some savings. When you increase it, it can make you more financially flexible. It might be that you are looking to go on a holiday or just have better spending freedom. Either way, you need to increase your disposable income.
Let’s have a look at some of the ways you can increase your disposable income:
Cut Unnecessary Expenses
The fattest way you are going to increase your disposable income is by cutting back on unnecessary expenses. Even small recurring costs can add up over time. When you look at your budget properly, you can find ways to cut back on these. You should look at things like unused subscriptions and find cheaper alternatives for things you use every day. When you do this, you should be able to free up a good amount of money. Try cooking at home more often, and buy coffee at home instead of buying it each day on your lunch break.
Negotiate On Bills
You will find that there are many bills and contracts that you have the power to negotiate with. Talk to your service providers and see if they can offer you a lower price. You should be able to make a big impact on your monthly expenses by doing this. Therefore, you are growing your disposable income. Talk to them about promotions and discounts. If you find a better deal with another provider, talk to your existing one first, as they may be able to beat the price or match it. This is something that you should check when you have insurance renewals, too. Often, your renewal price will be higher than finding a new quote.
Improve Your Financial Agreements
Agreements such as car finance can sometimes be more expensive than they need to be. If you have recently taken out an HP car finance deal, it might be worth seeing if you are eligible for HP car finance claims. Some people have missold deals recently, so you may be due compensation. It may also be worth looking at things like any credit cards or loans that you have. It can sometimes be worth changing your card or loan for a lower APR when it is available. It will lower your payments and the amount of interest that you pay back. This then increases your disposable income.
Explore Addional Income
An obvious choice would be to create additional income so you have more disposable income. You could ask for a raise if you have been with the same employers for a while, start a side hustle, or maybe do overtime. You could also start using cashback apps, where you can get money back for your regular purchases.
As you can see, there are many ways you can grow your disposable income; these are just a few. Do you know any other ways you can grow your disposable funds? It would be great to hear them in the comments below.
