GLOSSARY · BUDGETING, SPENDING & SAVING

Variable expense

A cost that changes with how you live, such as groceries, fuel, eating out and entertainment. Some variable spending is essential and some is optional. Because it responds to day-to-day choices, it is the fastest part of a budget to change and the easiest to let drift.

Also called: variable cost, discretionary spending, flexible spending

COMPUTE IT WITH YOUR NUMBERS

Household spending vs peers →Is my spending on housing/transport/food normal for my income and household?Latte Factor Calculator →What does a recurring small spend cost me invested, and how much does it delay FI?

LEARN IT PROPERLY

CHAPTER · EXPENSE TRACKING & AWARENESS · FOUNDATIONSFixed, Variable and Irregular Expenses CHAPTER · EXPENSE TRACKING & AWARENESS · FOUNDATIONSWhere the Money Goes: Reading Your Spending by Category

RELATED TERMS

Fixed expense Lifestyle creep

SOURCES

Consumer Expenditure Surveys. U.S. Bureau of Labor Statistics.

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