Non-discretionary SpendingPersonal non-discretionary spending is spending that is required to maintain your standard of living. Corporate and government non-discretionary spending relates to obligations such as loan repayments or public education. For example:
Discretionary SpendingPersonal discretionary spending is optional spending that mostly relates to improvement, experience, social status and growth. Corporate and government discretionary spending relates to strategy such as research & development or infrastructure spending.
Fixed ExpensesFixed expenses are predictable obligations that must be paid at regular intervals such as monthly or yearly. Spending on fixed costs is more or less automatic and there may be penalties for failure to meet these obligations. In many cases, fixed costs can be canceled with notice.
Corporate fixed expenses include things like equipment lease and employee salary. Government fixed expenses include entitlement programs such as pension payments.
Taxes (e.g. Property Taxes)
Variable ExpensesVariable expenses are costs that fluctuate or are unpredictable. For example, an electricity bill that is different each month.
Repairs & Replacement