An expense is an outgoing payment made by an individual or organization. The most common expenses are those related to housing, food, transportation, and healthcare. However, expenses can also include items such as clothing, entertainment, and education.
When budgeting for expenses, it is important to consider both fixed and variable costs. Fixed costs are those that remain the same each month, such as rent or a mortgage payment. Variable costs can fluctuate from month to month, such as utility bills or gas prices. Creating a budget that includes both types of expenses can help you better manage your finances and avoid overspending.