What is a Discretionary Expense?
Discretionary expenses are any type of expense that is not considered to be essential to the operation of the home or business. As opposed to variable expenses, which are considered necessary to enjoy and equitable standard of living, a discretionary expense is something that enhances that basic standard, but can also be avoided if circumstances make this necessary. Many people set aside funds that are outside the usual budget as a means of having resources on hand to indulge in purchases that are discretionary in nature. The easiest way to understand the idea of a discretionary expense is to take a look at the home budget. In order for a household to operate, several line items are considered essential. One of these line items is food. To this end, the budget will provide for a fixed maximum amount of food purchases during the budget period, with the understanding the food will be prepared in the home and meet the basic nutrition requirements of the residents. This budget line item is
