What is essential expenditure?

If money is tight, it’s important to know the difference between essential and non-essential expenditure

Exploring ways to save money and having a strong grip on what’s coming into and going out of your bank account is a very important financial habit. 

Regularly reviewing your outgoings against your earnings will mean you’ll always manage your money effectively. 

Couple reviewing their spending on a laptop

Why is budgeting important?

Having a budget helps create financial stability, both day-to-day and in the long run. Tracking expenses and expenditure and ensuring they remain within your budget will make it easier to pay bills on time, help you build an emergency fund and even save for major life goals, such as buying a car or paying for a wedding.

When money is tight, budgeting is even more important. It will enable you to make savings on non-essentials and put that money towards the cost of your essential expenditure.

What is essential and non-essential spending?

What are some examples of essential and non-essential spending?