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Expense
Money going out. Splits into fixed expenses (the same every month) and variable expenses (different each month).
Example
Phone bill, $20 a month, every month. That's a fixed expense. Bubble tea, sometimes $0, sometimes $25. That's a variable expense. The first one is set; the second one moves around with your choices.
How it fits in
Expenses are the easiest place to find money you did not know you had. Fixed expenses are negotiated once and then set. Variable expenses respond to attention. Most month-to-month savings come from cutting variable expenses. Most large savings come from renegotiating fixed ones. Both are useful at different times.
Where this is taught
Related terms
When the money you earn from saving starts earning its own money on top.
Interest paid only on the original amount, never on the interest you have already earned.
Needs are the things that keep you safe and well. Wants make life nicer. Mixing them up is what empties most budgets.