Expected expenses are those that you know happen either weekly, monthly, quarterly or annually. Examples are groceries, electric bill, fuel bill, taxes and insurance to mention a few. Unexpected expenses are those expenses you did not see coming.
Necessities often include the following:
You might think expenses are expenses. If the money's going out, it's an expense. But here at Fiscal Fitness, we like to think of your expenses in four distinct ways: fixed, recurring, non-recurring, and whammies (the worst kind of expense, by far). What are these different types of expenses and why do they matter?
Utility bills (cable, cell, electricity, water, etc.) Lease / car loan payment. Vehicle insurance (if paying monthly) Life / Disability / Extended health (or other) insurance.
There are three major types of expenses we all pay: fixed, variable, and periodic.
Regular bills often include:
Examples of Expenses
There are three major types of financial expenses: Fixed, Variable, and Periodic. Fixed expenses are expenses that don't change for long periods of time, like office rent or vehicle lease payments for you or your staff. Variable expenses change from month to month, such as utilities or meals and entertainment.
The easier it is to categorize your transactions, the more likely you'll consistently keep track of your finances. This involves first categorizing your expenses as essential expenses or non-essential expenses. Then, categorizing by groups of similar purchases.
There are two main categories of business expenses in accounting: operating expenses and non-operating expenses.
Examples are groceries, electric bill, fuel bill, taxes and insurance to mention a few. Unexpected expenses are those expenses you did not see coming. An example would be going for your inspection of your car and not passing because there is something that must be repaired.
A little planning (and saving) now will make those emergencies and unexpected events much easier to handle when they come your way.
How do I pay for the expense right now?
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