Friday, 7 August 2020, 8:41 PM
Site: MoneyU
Course: MoneyU (MoneyU)
Glossary: MoneyU Glossary of Terms

Discretionary Spending

Spending that isnÔÇÖt necessary. This refers to things like magazines, going to the movies, grabbing some fast food for dinner, internet access, gifts for people, clothing, etc.

Expense History

A history of a particular expense, such as your electric bill, your other utilities, etc.

Fixed Expenses

Expenses that you must pay every month. These are expenses that you really can't change, like your mortgage, rent payment, car payment and child care.

Non-Discretionary Spending

Spending that is necessary. This refers to things that you have to spend money on, such as food, gas for your car, other transportation, etc.

Spending Plan

A budget you use to track your income and expenses.

True Cost

The actual cost of something, as compared to what you think it will cost. For example, the ÔÇ£true costÔÇØ of a car does not just include the price you paid for the car, but also for things like gasoline, maintenance, repairs, auto insurance, etc. ItÔÇÖs important to determine the true cost of an item before you actually purchase it.

Variable Expenses

Expenses that can change from month to month. Variable expenses include necessities that can be reduced (such as food and utilities) and non-essentials that could be eliminated (e.g., long distance charges, cable, magazine subscriptions, etc). Reducing these expenses is the simplest step in getting control of your finances.