It’s easy to think of disposable income as money that’s there to help you enjoy the things you love. But your disposable income can do so much more like build funds to invest in property, pay off a mortgage sooner, buy new assets or generally build wealth for the future.

That’s why it’s good to think of it as both a short and long-term asset. The savings you make by managing your money carefully are then available to invest, which has the potential to put you in a better position to reach your life goals.

And a few simple strategies could help you to enjoy more of your wealth, for longer.

Get a good view

A clear view of your money: It can be easy to lose track of your personal finances – especially if you have a hectic work life. But taking the time to look through your expenses – from property to education to leisure – gives you the information you need to make the right choices. You may even be able to free up more of your money by spotting unnecessary expenses, like club memberships you don’t need anymore.

Take more control over payments: Mobile wallets, contactless payments and credit cards are very convenient. However, they can also make it easier to lose sight of spending. Some find that paying with cash helps them be more disciplined.

Being smart with spending

Don’t compare yourself to others: Often, peer pressure and the desire to keep up appearances can cause you to spend money on things you wouldn’t otherwise have done. But remember, your money is there to make your wishes a reality – not to lock you into a lifestyle you don’t enjoy.

Be strategic with treating yourself: You may be dreaming of a sports car – but it’s always worth asking, what will it be worth in ten years? However, that’s not to say you can’t buy what you love. In fact, although not guaranteed certain items like works of art, classic cars or designer fashion could even appreciate in value – and become an investment.

Building your wealth

Consider increasing your pension contribution: Not only does this mean more for you to enjoy later, it also can make you feel better about what you’re spending now, knowing that your money is growing by itself.

Find the best bank account: By shopping around, you can find one that’s tailored to your wealth, and find better interest rates, overdraft options – and even personalised support.

Automate saving and investing: Setting up regular payments into a savings account, for example, means you won’t forget to do it. You can also do the same thing with your investments, with recurring contributions. There are even AI-powered apps that can help you save more in smart ways.

Have a professional by your side: Everyone has individual needs and circumstances and although a financial adviser’s services don’t come for free, they can often be worth it. They can talk to you about how to put your disposable income to the best use – and how you can use it to take the next steps in your life.

Have a chat with one of our Private Banking and Advice Managers and see how they can help. The service is open to those with £100,000 sole annual income, and /or £100,000 in savings, investments and/or personal pensions. Remember with investing, the value of your investments can go down as well as up, and you may not get back what you originally invested.

There are no charges for our initial appointment and no obligation to take any of our services or products. There may be fees and charges for any advice or services subsequently provided.

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Lloyds Bank plc. Registered office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales No. 2065. Lloyds Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278.

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