WHAT IS AN EXPENSE?
Expense is the money you spent on something or an outflow of money to another person, item, service for a costs.
What is a Expense in more detail?
When you hear the word expense you will then directly say that it is the money that comes out from our own pocket to buy something we need or wants. We do need to spend for us to live comfortably but it takes a lot of discipline if you wanted to manage your spending. Everyday we all deal with daily, monthly or yearly expenses like rent, food, clothing, transportation, furniture and etc.
We should manage our expenses wisely, this way we will not live from paycheck to paycheck. You shall write down your expenses in an excel sheet, a personal finance mobile app or on paper, right now I am writing down my expenses on a paper, well it depends on your preferences. You compare your current expenses with the previous months, this way you will know if you incurred a big expense and cut down on it immediately. Then at the end of the month, review your expenditures and set alarms or alerts to track your expenses.
When we go to a coffee shop, malls, restaurants we do pay for the coffee we ordered, the dress you wanted to have for a long time or dine in a cozy resto, all these that we do are expenses.
And now when we are at home, choosing to stay in our cozy bed and relax instead of going out we still do some expenses. Like if we watch shows from our cable tv’s, turning the lights on, postpaid subscriptions, and newspaper subscriptions, we do spend on them. Paying the cable company, the electric company, phone company and newspaper company. So all these are part of our expenses.
We are in the age of digital mobile and new technologies. People wants to make their life easier and comfortably, so for it to do we do spend on things that sometimes doesn’t add value to our life. At the end we do acquire expenses that are only wants rather than what we need.