Tag: expenses

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What are some common examples of controlling discretionary expense?

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

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Which type of expense can be controlled?

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.

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What are discretionary expenses?

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.

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Does an expense list have more than one use?

Once there is a list of the expenses that are being made then it has multiple uses.

One can look to see if there are any heads of expense that are not essential.

The amount spent is also important from the point of view of controlling expenses.These can be gradually reduced to bring the expense down.

Sometimes the list will also give an idea why expenses are actually far more than what they should actually be.

It easily show how the expenses have changed over a period of time.

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How does one make the expense list for the first time?

If the list of expenses are not available then a fresh one can be made.

This will require noting down each spend as it is made.

At the end of the month the total expenses will be available.

The heads under which this is made would also be known.

It can become a way to reconstruct the expense list.

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How does one work out the expenses made?

There is a need to have a complete list of the expenses made.

This will require sitting down and looking at the various spends made by the family.

These need to be listed out one by one so that nothing is missed out.

There could be a need to revisit this over and over again to include items not considered earlier.

The final list would then be available and this is a better way to ensure that all items are included..

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What are fixed expenses?

Fixed expenses are those amounts that have to be spent each month or week.

There is no choice in terms of trying to control these expenses.

A rent paid for the home is a fixed expense as this has to be paid each month.

These usually have to be paid on a certain date of the month.

All the fixed expenses together represent the basic minimum amount that has to be earned each month.

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What are expenses?

An amount that you spend is an expense for you.

The spending can be in different areas including living expenses or entertainment expenses or even lifestyle expenses.

Some expenses are essential like food or rent or even conveyance to get from home to work.

Other expenses are more dependent on the choices that you make in terms of your personal interest or even lifestyle.

Expenses should be based on the income that is earned so that there are some savings and there is no shortage of money.