{"id":2266,"date":"2023-02-10T23:02:48","date_gmt":"2023-02-10T23:02:48","guid":{"rendered":"https:\/\/www.nerdwallet.com\/au\/?page_id=2266"},"modified":"2023-05-24T12:47:31","modified_gmt":"2023-05-24T12:47:31","slug":"discretionary-spending","status":"publish","type":"page","link":"https:\/\/www.nerdwallet.com\/au\/personal-finance\/discretionary-spending","title":{"rendered":"Discretionary Spending: The Extras, Not Essentials"},"content":{"rendered":"\n
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When it comes to spending money, there are things that you want to buy \u2014 and things you have to pay for. That’s the line between discretionary expenses and everything else. In other words, wants versus needs.<\/p>\n\n\n\n

What is discretionary spending?<\/strong><\/h2>\n\n\n\n

A discretionary expense is voluntary spending. You want to buy something, but it isn’t mandatory. Entertainment and recreational purchases fall into this category. <\/p>\n\n\n\n

On the other hand, bills such as rent, home loan payments and utilities are non-discretionary expenses. You have to pay for those. <\/p>\n\n\n\n

When working with a budget<\/a>, discretionary spending is drawn from the money left over after paying the essential bills.<\/p>\n\n\n\n

\u00bb MORE: <\/strong>How to save money<\/a><\/p>\n\n\n\n

What are examples of discretionary expenses?<\/strong><\/h2>\n\n\n\n

Think of the \u201cfun\u201d things you spend money on, like dining out, ordering takeaway and buying clothes and gifts. Discretionary spending also includes the money you spend on hobbies, entertainment and holidays. <\/p>\n\n\n\n

Here are more examples of discretionary expenses:<\/p>\n\n\n\n