What is a flexible expense?
A flexible expense is a regularly occurring cost with an amount that changes from month to month. A flexible expense is a regularly occurring cost with an amount that changes from month to month. Unlike fixed costs, flexible expenses allow you to have more control over the amount of money you spend.
What are some examples of inflexible costs?
Even some apparently inflexible costs, like groceries, may include flexible components, like pre-cooked entrees or the most expensive cuts of beef. There are always more affordable options to inflexible expenses, such as purchasing a Ford instead of a BMW.
Is pub cable tax deductible?
Because "meals and entertainment" is only 50% deductible, but your pub cable bill is 100% deductible. January 11, 2018 08:16 PM I'm a CPA. I call it "in-store entertainment" or similar. This is to distinguish from "meals and entertainment" (which means you are wining and dining someone).
What are the different types of expenses?
There are two major types of expenses: fixed and flexible. Flexible expenses are controllable costs that vary from week to week or month to month. Cutting costs by adjusting flexible expenses is easier than cutting fixed expenses, as fixed expenses remain constant, typically based on contractual agreements.
Is cable television a fixed expense?
Car insurance, home insurance and life insurance are also fixed payments, along with your monthly electric and water bills. A digital subscription to a newspaper and monthly cable or streaming services are additional fixed costs.
What are examples of flexible expenses?
A few examples of flexible expenses include what you pay for monthly groceries, clothing, and transportation, as the total cost of all of these things will most likely vary. The biggest difference between flexible and fixed expenses is that flexible expenses give you more control over how much money you spend on them.
What are 5 expenses that are flexible?
Flexible expense examples include groceries, dining out, entertainment, and even utilities....Here are some examples of variable essential costs:Groceries.Cell Phone Plans.Internet Services.Transportation Costs (gas, level of insurance coverage, etc.)Utilities.
Is entertainment a flexible expense?
When financial advisors counsel individuals, they routinely ask them to estimate their expenses, separating those that are necessary and non-negotiable, like mortgage and car payments, and those that are flexible, like entertainment costs. Entertainment costs can usually be broken down further into categories such as a ...
What are fixed and flexible expenses?
Fixed expenses generally cost the same amount each month (such as rent, mortgage payments, or car payments), while variable expenses change from month to month (dining out, medical expenses, groceries, or anything you buy from a store).
What are examples of a fixed expense?
Examples of Fixed ExpensesRent or mortgage payments.Renter's insurance or homeowner's insurance.Cell phone service.Internet service.Health, disability or life insurance premiums.Property taxes.Childcare expenses.Student loan or car loan payments.
What type of expense is cable TV?
Cable television almost always constitutes an entertainment expense, though, and only in a select few cases can you deduct it from your taxes.
Is entertainment a variable expense?
Variable expenses include such things as groceries, gas for your vehicle, utilities, entertainment expenses, and clothing. By keeping track of these expenses over time, you can get a better idea of how much you're spending each month and plan accordingly.
Is a car payment a flexible expense?
Examples of fixed expenses include: Rent or mortgage payments. Car payments.
What is considered flexible income?
Flexible Income Fund A bond fund that invests in many different types of bonds. For example, a flexible income fund may include U.S. Treasury securities, investment-grade corporate bonds, and junk bonds in its portfolio.
Is an electric bill a fixed expense?
Fixed expenses are consistent and expected bills you pay each month, such as a mortgage or rent, a cellphone bill and a student loan payment. Car insurance, home insurance and life insurance are also fixed payments, along with your monthly electric and water bills.
What is flexible expenses in home economics?
FLEXIBLE Expenses change from month to… These expenses change from month to month. They are the wants or “nice to have” things in life but are not essential. Flexible expenses include things like entertainment, toys, hobby supplies, alcohol, tobacco and any new unnecessary items like clothing or shoes.
Is a car payment a flexible expense?
Examples of fixed expenses include: Rent or mortgage payments. Car payments.
What is an example of a flexible expense quizlet?
Flexible: expenses that can change from month to month. EX: groceries. Needs: Goods or services that are required such as food, clothing, shelter, health care.
What is a flexible cost?
Flexible costs, also called discretionary costs, are costs that are not committed to by the company. For some costs, such as rent or loan payments, a business is contractually obligated to make periodic payments and will continue to incur costs until some point in the future.
What are the 3 types of expenses?
There are three major types of expenses we all pay: fixed, variable, and periodic.
Average Cost of Cable Per Month
Because of factors such as promotional pricing and bundled services, it can be hard to answer the question, "How much is cable a month?"
How Much Is a Month of Bundled Services?
A significant caveat to the FCC report is that it draws on 2016 data and may not accurately reflect how much cable costs per month now. Plus, many people buy their service as part of a bundled package, rather than a standalone cable plan.
Save Money on Cable Costs
Cable companies often reel in new customers with promotional pricing. "When you sign up for your cable service, they are going to give you a good deal," Kurland says. After that first year, though, the price can quickly climb.
Should You Cancel Cable and Stream Instead?
Of course, the best way to save money on cable is to eliminate it altogether. That's what Christy Baldwin of Lowell, Michigan, did four years ago.
Flexible Expenses Explained in Less Than 5 Minutes
DeShena Woodard has over three years of experience writing and speaking about paying down debt, saving money, budgeting, and more. She is a Certified Life Coach, as well as a bonafide Financial Freedom Coach. DeShena paid off all her debt and now aims to help others do the same through her personal finance writing and coaching.
Definition and Examples of a Flexible Expense
Flexible expenses, also known as variable expenses, are costs you pay that can change from week to week or month to month.
How Do Flexible Expenses Work?
Chances are you’re aware of how much income you earn every month. It’s just as crucial to know how much money you’re spending and what you’re spending it on. Generally, every budget should consist of both fixed and flexible expenses. 1
Flexible Expenses vs. Fixed Expenses
There are two types of expenses: fixed and flexible. Find a bit more detail about both below.
Types of Flexible Expenses
Saving money on flexible expenses is doable. However, it may require taking a close look at your spending and making a few lifestyle adjustments. And when you’re aware of your spending habits, you can look for opportunities to cut back on (or even cut out) certain expenses, at least temporarily.
What is flexible expense?
In personal budgeting, a flexible expense is a non-essential expense that can be cut back or eliminated. Flexible expenses stand in contrast to fixed expenses, also known as inflexible expenses. Even inflexible expenses can contain flexible components, such as choosing more affordable substitutes. To create a budget and stick to it, it is critical ...
How to manage flexible expenses?
The first step in managing flexible expenses is to discover what they are. One can go over their checking account and credit card statements to see what they spend their money on over a month. They can break the categories down into flexible and inflexible expenses and start noting what the flexible expenses are.
Is flexible expense recurring?
Though a flexible expense may be recurring, the amount spent and the decision to incur the expense are still matters of choice . For example, if a household elects to order a cable or satellite television service, the cost recurs monthly. The expense may be reduced by opting for a plan with fewer premium channels.
