What is a discretionary expense?

What is a discretionary expense?

The term discretionary expense refers to a cost that a business or household can get by without, if necessary. Meals at restaurants and entertainment costs are examples of discretionary expenses.

What is a discretionary expense quizlet?

Intermittent expenses. Expenses that occur at various times throughout the year and tend to be in large amounts(tuition payment, car repairs) Discretionary (non-essential) expenses. Expenses for things we don’t need (eating out, gifts, snacks)

Are non-essential expenses discretionary or intermittent?

Chapter 3 – Budgeting – Review

A	B
Choose One: A written cash flow plan is (budget, personal finance)	Budget
Choose One: Expenses that remain the same from month to month (variable, fixed)	Fixed
Choose One: Non-essential expenses is (discretionary, intermittent)	Discretionary

What is an example of a non discretionary expense?

Non-Discretionary Expenses means those Operating Expenses, the payment and amount of which are not within the discretion of Owner or Manager, including without limitation utility charges, salaries and benefits of Property employees, scheduled payments of principal and interest on indebtedness encumbering the Property.

Which expense is considered an unexpected expense a car maintenance?

what would be considered an unexpected expense? An auto repair or an out of town funeral, plumbing disaster or a car accident are examples.

How do you pay for unexpected expenses?

If you’re among the millions of Americans who could not pay for an unplanned expense, here are a few tips that could help:

1. Start an emergency fund/HSA.
2. Review your monthly budget and make cuts.
3. Sell items.
4. Apply for a personal loan.
5. Get a home equity line of credit.
6. Apply for a 0 percent APR credit card.

Do unexpected expenses affect your budget?

When you are budgeting and saving, the money in your emergency fund should be earmarked for unexpected expenses. Once you understand what unexpected expenses actually are, you will be better able to plan your savings and manage your budget.

What are fixed expenses in a budget?

For personal budgeting purposes, fixed expenses are the costs that you can forecast with confidence because they don’t change from month to month or period to period. They tend to take up the largest percentage of your budget because they are things like rent or mortgage payments, car payments and insurance premiums.

What are 5 fixed expenses?

Fixed Expenses – Definition, Examples and Lists

• Mortgage(s)
• Rent.
• Property taxes (if paying monthly)
• Strata fee / condo fee.
• House / tenant insurance.
• Utility bills (cable, cell, electricity, water, etc.)
• Lease / car loan payment.
• Vehicle insurance (if paying monthly)

What type of expense fluctuates month to month?

“Variable expenses are costs that change over time. They might fluctuate over a week, month or year.”

Is grocery a fixed expense?

Variable Expenses. Fixed expenses are your weekly, monthly, or annual bills that don’t fluctuate. These include things like mortgage or rent payments, car payments, insurance premiums, utility bills, and the average amount you spend on groceries.

What is the difference between a fixed expense and a variable expense?

Fixed expenses: These are costs that largely remain constant, such as your monthly rent. Variable expenses: These are costs that vary or are unpredictable, such as dining out or car repairs.

What is an example of a variable expense?

Typical household variable expenses might include: The cost of household maintenance such as painting or yard care. General expenses such as clothing, groceries, and car maintenance. Resource expenses such as fuel, electricity, gas, and water.

Which of the following is an example of variable expense?

Examples of variable costs Credit card and bank fees. Shipping costs. Raw materials. Sales commissions.

Is Medical a fixed or variable expense?

It’s much easier to budget for fixed expenses than it is to budget for a variable expense or discretionary expense. Your health insurance, car insurance, life insurance and homeowners or renters insurance are also examples fixed costs.

What bills do adults pay monthly?

Needs

• Mortgage/rent.
• Homeowners or renters insurance.
• Property tax (if not already included in the mortgage payment).
• Auto insurance.
• Health insurance.
• Out-of-pocket medical costs.
• Life insurance.
• Electricity and natural gas.