A discretionary expense is an optional expenditure that is not essential to the operation of a business or household. Discretionary expenses are typically incurred for luxury items or services that are not considered necessary for survival. Some examples of discretionary expenses include: • Entertainment: movies, concerts, theatre tickets, etc. • Dining out: restaurants, cafes, bars, … Read more
Disposable income is the total amount of money that a household has available to spend or save after taxes and other mandatory deductions have been taken out of their gross income. This is the money that households have available to them to make discretionary choices about how to spend or save. While gross income is … Read more
A bill is a statement that shows how much money is owed for a product or service. The term “bill payable” refers to a bill that has been issued and is waiting to be paid. In business, bills payable are often recorded in a separate ledger account from other accounts, such as accounts receivable. This … Read more
Plus 10 Budgeting Myths Holding You Back. A budget is an estimation of revenue and expenses over a specified future period of time. Budgeting myths are ideas or beliefs about budgeting that are not accurate. These myths can hold you back from creating and following a budget. Some common budgeting myths include: 1. You need … Read more
. Fund: Definition and How It Works A fund is a type of investment that pools money from many investors to purchase a variety of assets. Funds are managed by professional money managers who attempt to grow the fund’s value over time. There are many different types of funds, each with its own investment objectives … Read more
A shoestring budget is a very tight or bare-bones budget. It is often used to describe the budget of a start-up business or a household with very little income. A shoestring budget typically includes only the absolute essentials, and cuts out any discretionary spending. For example, a household on a shoestring budget might only spend … Read more
. Total Cost of Ownership (TCO): The Cost of an Asset Over Its Lifetime. What are three costs of ownership? The three costs of ownership are the purchase price, the costs of maintaining the property, and the costs of selling the property. The purchase price is the amount of money that you pay for the … Read more
An open-end lease is a type of lease agreement in which the lessee is responsible for any excess wear and tear on the leased vehicle beyond the agreed-upon number of miles or length of time. The lessee may also be responsible for a disposition fee at the end of the lease. What are the 4 … Read more
The term “living paycheck to paycheck” generally refers to the situation where an individual’s income is barely sufficient to cover their basic living expenses. In other words, they are only able to make ends meet by using their paycheck to pay for their basic necessities like housing, food, and utilities. This can be a very … Read more
Lemon laws are state laws that provide protections for consumers who purchase defective vehicles. These laws vary from state to state, but typically provide for a refund or replacement of the vehicle if it cannot be repaired after a certain number of attempts. In some states, lemon laws also cover used vehicles. Who wrote the … Read more
