Download - Expenditure
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Expenditure
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Opportunity Cost
Is making a decision/choice based on limited/scarce resources.
The item not selected is the opportunity cost- opportunity foregone.
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Example I have €2.00. I can buy ice-cream or Pringles. I choose ice-cream. Opportunity cost = Pringles. Financial cost = €2.00
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Impulse Buying
Buying on the spur of the moment. Without thinking or planning. Eg.
We’re so cute!
Buy us
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False Economy
Buying something because it is cheap even when you don’t need it.
Eg 2 for 1 BOGOF…..
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Fixed Expenditure
Is money that is spent at the same time each week, month, year.
The amount is usually the same.
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Eg. Mortgage Rent Loan repayments
Insurance TV licence
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Irregular Expenditure
The amount paid out varies. It is paid at different times. Eg. ESB, heating, petrol, phone Groceries School uniform & supplies Shoes & clothes………
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Discretionary Expenditure
Is money you spend on things you can live without (luxuries)
The amount varies. Eg. Sky tv, playstation, Wii, brand name clothes, holidays, Presents, entertainment, alcohol,
cigs..
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Prioritising If you have a limited income you must
plan to spend. You must make sure you have enough
for: Fixed expenditure first, Then irregular expenditure And finally only if you have money left
can you afford discretionary expenditure.
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If you have a deficit
You must reduce Discretionary expenditure first.
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Current ExpenditureRevenue Expenditure
Is spending money on day to day items.
Eg.Food, drink, petrol, phone credit,
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Capital Expenditure
Is spending on durable items. Items that last a long time. Eg. Car, TV, house, furniture, Washing machine……
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Calculating and ESB Bill
Subtract present from previous meter reading.
Multiply by the rate per unit. Add the standing charge (rental of equipment)
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ESB Meter ReadingPresent 6734
Previous 5890
No of units used 844
Rate per unit .20
Sub total 168.80
Standing charge 10.00
Total charge 178.00
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ESB Meter Reading
Present 6534Previous -4850No of units usedRate per unit X.30Sub totalAdd Standing charge
+15.00
Total charge