Non-Discretionary Purchases

Discretionary Purchases: Discretionary purchases are optional goods and services that are not essential for survival but can be chosen based on personal preferences or desires.

Fixed Expenses: Fixed expenses are regular payments that remain constant each month regardless of usage or consumption. Examples include rent/mortgage payments and insurance premiums.

Necessities vs Luxuries: Necessities refer to items needed for basic survival while luxuries represent nonessential items that provide additional comfort or enjoyment.