How to identify your discretionary expenses?

[Good-Person]

When we talk about finance, it is impossible to avoid the topic of expenses. There are many different kinds of expenses. There are many people who spend a lots of money on luxurious products and items. On the other hand, many people spend money to fulfil their basic needs. When you spend money on luxurious expenses, this is known as "discretionary expenses". So, how do you deal with these expenses?

 

[Heatman]

Whenever you're spending on unnecessary expenses that wouldn't have any positive impact in your business, that's going to be regarded as a discretionary expenses. Business expenses are meant to help and boost the business because you're investing back into the business.

 

[Good-Person]

Whenever you're spending on unnecessary expenses that wouldn't have any positive impact in your business, that's going to be regarded as a discretionary expenses. Business expenses are meant to help and boost the business because you're investing back into the business.

I think that identification of such kind of expenses is a very important thing. Each and every day, we spend on items we do not even need and this is why we may need to discuss about it and identify such kind of expenses. I have also decreased my expenses a lot and I think that this is the only way to stop spending money in an excessive manner.