Expenses

Expenses:

o   There are 2 major categories of expenses in a personal budget fixed expenses and variables (or discretionary) expenses

Fixed expenses:

o   These may include rent or mortgages, medical insurance, car registration and other regular payments that can be controlled. These can include items such as food and clothing

o   A weekly, monthly or yearly budgets can be prepared. Expenses may be calculated weekly (foods), monthly (health insurance), quarterly (electricality) or yearly (car rego). Depending on the budget duration of all expenses should be converted to weekly, monthly or yearly amounts

o   Fixed expenses may include rent or mortgage, medical insurance, car registration, and other regular payments that must be paid and cant be varied

Discretionally expenses

o   Include items such as food, entertainment and clothing.

o   To reduce your expenses in order to save money, you would look at reducing expenses in order to save money