6/5/2023 0 Comments Discretionary expense![]() While rent, mortgage payments, and groceries are necessary, discretionary expenses are those you incur voluntarily such as dining out or cable television. comes under non-essential or discretionary expenses. For instance, the expenses incurred while going out for diner, buying luxury items for home decor, going on a trip, etc. These spending are done basis wants rather than needs. These are optional expenses that one makes normally during a month. So, groceries are a variable expense, but dining out is a discretionary expense. You need food, but you don’t need it to come from a restaurant. To determine whether something is a discretionary expense, consider whether it’s a want or a need. Discretionary (non-essential) expenses.Expenses that remain the same from month to month(rent, cable bill, car payment) Expenses that vary from month to month (electriticy, gas, groceries, clothing). Discretionary income is your remaining money available after subtracting necessary bills from your income. It doesn’t account for any necessary bills you have like rent or car payments. Are car payments discretionary?ĭisposable income is the money you have available to spend after your employer withholds taxes from your paycheck. Some examples of areas funded by discretionary spending are national defense, foreign aid, education and transportation. Which are examples of discretionary spending? In simpler terms, non-discretionary expenses are those that are necessary to be incurred, also called as needs such as utilities, groceries, mortgage, taxes, etc. What is not a discretionary expense?Įxpenses are split into two categories – discretionary and non-discretionary. When you have petty cash available to you to use, the money you spend is an example of discretionary spending. The definition of discretionary is something that you use as desired or needed. ![]() On the other hand, bills such as rent, mortgage payments and utilities are nondiscretionary expenses. ![]() Entertainment and recreational purchases fall into this category. You want to buy something, but it isn’t mandatory. What are two discretionary expenses?Ī discretionary expense is voluntary spending. In contrast, discretionary spending refers to non-essential expenses, such as hobbies and travel. What are Non-Discretionary examples? Examples of these expenses include: rent, food, or mortgage payments. Non-discretionary spending is essential and non-negotiable spending defined within a budget. What are examples of non-discretionary expenses? Which of the following best defines discretionary income?. ![]() Is a cell phone bill a fixed or variable expense?.Which are examples of discretionary spending?.What are examples of non-discretionary expenses?. ![]()
0 Comments
Leave a Reply. |