Tag: discretionaryexpense

Those looking to cut discretionary expenses can look at many different areas to reduce it.

Different brands charge different prices so shifting from one brand to another is a way to cut costs.

A reduction in the number of time one spends is also a way to reduce this like eating out less or buying less clothes.

Comparing different places and then buying it from a cheaper place is another way to use the same thing but reduce costs.

Use of discounts and sales is another way to reduce these expenses

Fixed expense are not possible to be reduced or controlled.

This is especially true when the expense is for a basic thing like rent or electricity.

The way to reduce fixed expense is to stop using the thing altogether but this is not possible for basic needs.

Discretionary expenses are the one that can be controlled by putting off the expense.

They can also be controlled by buying cheaper things.

These are expenses which are not essential for day to day living

The amount to be spent is dependent on you as an individual

The figure is based on your decision or choice and hence is known as discretionary expense

Two people can buy a similar thing or get a service but pay vastly different amounts for it

Even the same thing can be bought at different prices for example buying a shirt for Rs 300 or for Rs 900.