What Is A Discretionary Expense?

• Vacations and travel expenses.
• Automobiles.
• Alcohol and tobacco.
• Restaurants and other entertainment-related expenses.
• Coffee and specialty beverages.
• Hobby and sports-related expenses, such as crafting, sewing, and gym memberships.

What is considered discretionary spending?

Discretionary spending refers to

non-essential items

, such as recreation and entertainment, that consumers purchase when they have enough income left over after paying the necessary expenses such as the mortgage and utilities.

What are examples of discretionary expenses?

• Vacations and travel expenses.
• Automobiles.
• Alcohol and tobacco.
• Restaurants and other entertainment-related expenses.
• Coffee and specialty beverages.
• Hobby and sports-related expenses, such as crafting, sewing, and gym memberships.

Is eating out a discretionary expense?

Thus,

the cost of the meal is considered to be a discretionary expense

, as the choice to dine out was decided at the discretion of the consumer. … Basically, any expense for goods and services that are not used in the essential day to day operations of the business would be classified as a discretionary expense.

What is discretionary spending in a personal budget?

Discretionary income is

the amount of an individual’s income that is left for spending

, investing, or saving after paying taxes and paying for personal necessities, such as food, shelter, and clothing. Discretionary income includes money spent on luxury items, vacations, and nonessential goods and services.

Is Internet a discretionary expense?

Cutting Down Discretionary Spending

This worksheet consists of bills that are easy to cut out if you had to reduce your spending. That can be a matter of personal opinion, as some people find it hard to imagine that some of these items, like cable television and home internet, are discretionary.

What is an example of a non discretionary expense?

Non-Discretionary Expenses means third party expenses over which

Managing Member and the Property Manager have no control

(including, for example, and without limitation, items that are budgeted for and/or approved by the Members, taxes, water and sewer costs and assessments, union labor contract costs and property- …

Is discretionary spending required by law?

Mandatory spending is required by law

on specific programs. After those programs are paid for, the president and Congress may use the remaining money for discretionary spending on programs they choose. … It accounts for about 23 percent of all federal spending and is required by law, so it is mandatory.

How much should I spend on discretionary items?

Discretionary spending –

30%: Thirty percent of

your budget is for anything you want but wouldn’t say you need. It would cover all of your non-necessities, such as entertainment and travel.

How do you spend discretionary income?

1. Spending. When individuals and households spend more of their discretionary income on goods and services, vacations, luxury items, and other nonessential items, money is funneled towards businesses that provide those goods and services. …
2. Investing. …
3. Saving.

Which expense is considered a fixed discretionary expense?

A fixed expense is a period-specif expense, which means is and expense you paid over a fix time. If you think about, the definition of “fixed, discretionary expense” fits an entertainment subscription perfectly; therefore

a music subscription service fee

is a fixed, discretionary expense.

Which expense is considered an unexpected expense?

Examples are groceries, electric bill, fuel bill, taxes and insurance to mention a few. Unexpected expenses are

those expenses you did not see coming

. An example would be going for your inspection of your car and not passing because there is something that must be repaired.

Are non-essential expenses discretionary or intermittent?

How much discretionary income is enough?

We like the 50/30/20 budget. With this strategy, you aim to limit nondiscretionary spending to 50% of your income. For your discretionary income, use

30% for lifestyle expenses

, like travel, restaurants and cable TV, and 20% to grow your savings or more quickly pay down debt.

What are the 3 types of expenses?

There are three major types of expenses we all pay:

fixed, variable, and periodic

.

What is an example of a flexible expense?

Flexible expenses are any non-essential cost that can be changed, reduced, or eliminated to help balance your budget. … Flexible expense examples include

groceries, dining out, entertainment, and even utilities

.