variable expenses
Also called: biaya variabel
Expenses whose amount changes each month, such as shopping and recreation.
What it means
Variable expenses are costs whose amount changes from month to month and are easier to adjust. Examples include food shopping, transportation, entertainment, and household needs. These expenses depend on a family's habits and circumstances. In a budget, variable expenses are usually given a maximum limit rather than an exact figure.
Why it matters for families
Variable expenses are the part most within a family's control when it needs to economize. If not monitored, small frequent expenses can eat away at the remaining money. The concrete result is that a family is puzzled because the money runs out even though there were no big purchases. Monitoring variable expenses helps a family find subtle leaks.
Example
For example, the food shopping budget is Rp2.5 million per month, but actual spending is Rp3.1 million because of frequent eating out. The Rp600 thousand gap is then covered by cutting other variable expenses. This figure is used to set a tighter limit for the next month.
Common misunderstanding
People often assume variable expenses don't need to be recorded because they are small. The correction is that small recurring expenses are precisely what most often blow up a budget.