Definition
Costs that can change from month to month, such as groceries, entertainment, or utility bills, making them flexible in your budget.
What to consider
- Track these expenses to understand your spending patterns.
- They can vary month-to-month, so plan for fluctuations.
- Look for opportunities to reduce costs during high-spending periods.
Real world scenarios
- Kelly’s grocery bill changes weekly based on sales and seasonal produce. She keeps an eye on these fluctuations to adjust other budget areas as needed.
- Power bills spike in winter for Daniel, so he budgets a higher utility amount then and lowers it during milder seasons.
- Seeing higher variable expenses for entertainment, Greg decides to limit weekend outings until he settles overdue bills.
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