Identifying The Four Expense Types

Question: Variable expenses

Answer: Expenses that vary from month to month (electriticy, gas, groceries, clothing).

Question: Fixed expenses

Answer: Expenses that remain the same from month to month(rent, cable bill, car payment)

Question: Intermittent expenses

Answer: Expenses that occur at various times throughout the year and tend to be in large amounts(tuition payment, car repairs)

Question: Discretionary (non-essential) expenses

Answer: Expenses for things we don't need (eating out, gifts, snacks)