Variable Expenses VS Fixed Expenses
Variable expenses (or flexible expenses) are expenditures over which an individual has considerable control. Food, entertainment, and clothing are variable expenses Some categories, such as savings, can be listed twice, as both fixed and variable expenses.
The following are examples of fixed and variable expenses that you might include in a cash-flow statement:
There is no rigid list of categories to be used in the expenses section, but you do need to classify all of your expenditures in some way that suits your needs. Rather than just use fixed and variable expenses categories, you might also separate expenditures into savings/investments, insurance, taxes, and household expenses. The more specific your categories, the deeper your understanding of your budget.
Marc has 36 years in financial services and 6 years in teaching.
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