Section 2.1 Your Personal Financial Landscape 37
A variable expense is a cost that changes both in the amount and time it
ltrsado‘hc-U‘qh‘akddwodmrdrhmbktcdhsdlrrtbg‘rennc+bknsghmf+sdwshmf+
ltrhbcnvmkn‘cr+‘mcdmsdqs‘hmldms-Sgdrddwodmrdrl‘xadmdbdrr‘qxnq
discretionary. A discretionary expense is an amount spent for an item that
‘odqrnmbntkccnvhsgnts-Enqdw‘lokd+ennchr‘mdbdrr‘qxhsdl-Gnvdudq+
sgdbnrsne‘chmmdqhm‘mtorb‘kdqdrs‘tq‘mshr‘chrbqdshnm‘qxdwodmrd-Vgdm
xnt‘qdrgnqsneb‘rg+chrbqdshnm‘qxdwodmrdrneedqsgdadrsnoonqstmhshdrenq
adjusting your spending.
At this point in your life, you no doubt receive basic necessities from
your family or guardians and spend your money mainly on discretionary
hsdlr+ rtbg ‘r ltrhb+ sdwshmf+ bnlotsdq f‘ldr+ ‘mc lnuhdr- Enq ‘ctksr+
chrbqdshnm‘qxdwodmrdrnesdmhmbktcdu‘b‘shnmr+fhesr+dwodmrhudbknsghmf+‘mc
other unnecessary goods and services.
TrhmfsgdvnqjrgddshmEhftqd1,3‘r‘fthcd+khrsxntqehwdc‘mcu‘qh‘akd
dwodmrdrhmsgde‘qkdesbnktlm-Sgdmdmsdqsgd‘lntmsxntrodmcnmd‘bg
one. You may want to star discretionary items and start with them if you need
snqdctbdxntqdwodmrdr-
Estimating Expenses
Week or Month of _______________
Expense Items Estimated Actual
Fixed Expenses
Bus pass $ 15 $ ______
Lunches 90 ______
Savings 15 ______
Total Fixed Expenses $ 120 $ ______
Variable Expenses
Snacks $ 20 $ ______
Movies/concerts/events 40 ______
Clothes 50 ______
CDs/music files 25 ______
Gifts 20 ______
Magazines 15 ______
Grooming aids 25 ______
Total Variable Expenses $ 195 $ ______
Total Expenses $ 315 $ ______
Goodheart-Willcox Publisher
Figure 2-4 Make adjustments to your variable expenses when you are short
on cash.