Are veterans benefits mandatory or discretionary?
The major mandatory programs in this function are compensation and pensions, including disability payments, education benefits, and the Veterans Choice Program .
What is the difference between discretionary and entitlement spending?
Mandatory spending is spending that doesn’t have to be approved by Congress: it happens automatically even if Congress doesn’t vote for it. Social Security is an example. Entitlement spending is a subset of mandatory spending. If Congress can vote to end them, they are not mandatory; they are discretionary.
Which expenses stay the same from month to month?
A routine expense is your rent or your car insurance. These items are not essential things you need to spend money on. These include things such as going out with your friends or deciding to stop at a coffee shop on your way to school. These are expenses that stay the same from month to month.
What are three examples of variable expenses?
What are Examples of Variable Costs?
- Direct materials. The most purely variable cost of all, these are the raw materials that go into a product.
- Piece rate labor.
- Production supplies.
- Billable staff wages.
- Credit card fees.
- Freight out.
What should my budget be?
Your needs — about 50% of your after-tax income — should include:
- Basic utilities.
- Minimum loan payments. Anything beyond the minimum goes into the savings and debt repayment category.
- Child care or other expenses you need so you can work.
What are variable expenses in a budget?
Variable expenses are defined as such because the amount you spend may vary each month. Although variable costs are quite often discretionary expenses, some may be necessities. Buying gas for your car each month is a variable expense, as are car repairs and maintenance. Grocery shopping is also a variable expense.
What budget categories do you use?
The Essential Budget Categories
- Housing (25-35 percent)
- Transportation (10-15 percent)
- Food (10-15 percent)
- Utilities (5-10 percent)
- Insurance (10-25 percent)
- Medical & Healthcare (5-10 percent)
- Saving, Investing, & Debt Payments (10-20 percent)
- Personal Spending (5-10 percent)
What are the five characteristics of an effective budget?
To be successful, a budget must be Well-Planned, Flexible, Realistic, and Clearly Communicated.
- The Budget Must Address the Enterprise’s Goals.
- The Budget Must be a Motivating Tool.
- The Budget Must Have the Support of Management.
- The Budget Must Convey a Sense of Ownership.
- The Budget Should be Flexible.
What’s the largest category in your budget?
Housing is typically the largest budget item in most budgets. This category includes everything related to owning or renting your home, not just your rent or your mortgage.
How much should I spend on each budget category?
If you’re new to budgeting, using the 50/30/20 rule is a great starting point. With the 50/30/20 budget, you allocate 50% of your income toward living expenses and necessities, 30% toward wants, and 20% toward debt and savings. Here’s how this would look. Say you bring home $3,000 each month.