Expenditure

Expenditure

1. Irregular Expenditure

   • Groceries
     • Clothing
       • Motor fuel
         • Light and heat
           • Waste/recycling charges
             • Telephone bills
               • Education costs
                 • Repairs
   • An expenditure that occurs on a less regular basis and the amounts tend to vary with usage. The timing and amount is unpredictable and is difficult to plan

2. Discretionary Expenditure

   • Entertainment
     • Holidays
       • Gifts
         • Upgrades to expensive items (e.g cars, furniture and household electronics)
           • Premium sports channels/ movie channels
   • This is spending on non-essential items that we choose to buy. Money should be spent on discretionary items after all essential items or needs have been paid.

3. Current Expenditure

   • Capital Expenditure
     • A new car
       • A laptop
         • Furniture
           • A T.V
     • This is another type of expenditure which is less regular and will not be repeated for a long time. Spending on items that will last a long time or once-off spending of this type is called capital expenditure
   • Groceries
     • Education
       • Utillity bills (e.g gas and electric)
         • Travel
           • Rent/Mortgage
   • Some expenditures are continuous and regular. This type of ongoing expenditure is called current expenditure.

4. Fixed Expenditure

   • Mortgage repayments
     • Rent
       • Car tax
         • Property tax
           • TV licence
             • Insurance premiums
   • Expenditure that involves the same amount of money being spent on a regular basis (weekly, monthly or annually). This payment does not depend on usage.