Living expenses refer to the costs associated with maintaining a household and meeting daily needs. These expenses typically include rent or mortgage payments, utilities like electricity and water, groceries, transportation, and insurance. Understanding living expenses is essential for budgeting and financial planning. Managing living expenses effectively can help individuals and families maintain a stable financial situation. By tracking these costs, one can identify areas to save money, such as reducing discretionary spending or finding more affordable housing options. This awareness can lead to better financial health and increased savings for future goals.