Flexible Expense

Posted in Finance, Accounting and Economics Terms, Total Reads: 247
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Definition: Flexible Expense

Flexible expenses are those expenses that can be adjusted or are flexible that can be changed according to the conditions. Generally expense on luxurious goods and on entertainment can be considered as flexible expense which can be varied according to the financial conditions.


Also Flexible expense may vary from person to person as what to be considered as a flexible expense how an individual treat a particular expense and can cut them if required. Flexible expense are the miscellaneous expense that occur in day to day transactions


Example of Household monthly expense categorizing type of expense

Expenses

Amount

% of Income

Type of Expense

Housing costs (Loan repayment and insurance)

$1,050

30%

Fixed

Food

$700

20%

Fixed

Clothing

$350

10%

Flexible

Transportation (car payment,  bus fare)

$420

12%

Fixed

Medical

$420

12%

Fixed

Savings

$350

10%

Flexible

Entertainment

$140

4%

Flexible

“Emergency” funds

$70

2%

Fixed


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