Answer:
Some of the types of expenses that you should track, and how to prioritize them are:
1. Fixed expenses
Fixed expenses are those that stay the same each month, regardless of your income or spending. Rent, car payments, and insurance are all examples of fixed expenses. These expenses are important to track because they can make up a large portion of your monthly spending. By tracking your fixed expenses, you can see where your money is going and make sure that you are not overspending in any one area.
2. Variable expenses
Variable expenses are those that change each month, depending on your spending habits. Groceries, dining out, and entertainment are all examples of variable expenses. These expenses are also important to track, but they are not as critical as fixed expenses. By tracking your variable expenses, you can see where you can cut back if you need to save money.
3. Discretionary expenses
Discretionary expenses are those that you can choose to spend money on or not. Clothes, vacations, and gifts are all examples of discretionary expenses. These expenses are the least important to track, but they can still add up over time. By tracking your discretionary expenses, you can make sure that you are not spending more than you can afford.
Here is a list of the types of expenses you should track, in order of priority:
- Fixed expenses
- Variable expenses
- Discretionary expenses
By tracking your expenses, you can get a better understanding of your spending habits and make sure that you are not overspending in any one area. This can help you to save money and reach your financial goals.