Expenses refer to the costs incurred by individuals or organizations in the course of their activities. They can include a wide range of items such as rent, utilities, groceries, and transportation. Understanding and managing expenses is crucial for maintaining financial health and achieving long-term goals. Tracking expenses helps individuals and businesses identify spending patterns and areas where they can cut costs. By categorizing expenses, one can create a budget that aligns with their financial objectives, ensuring that they live within their means while still enjoying necessary and discretionary spending.