Total Expenses refer to the overall amount of money spent by an individual or organization over a specific period. This includes all costs such as rent, utilities, salaries, and supplies. Understanding total expenses is crucial for budgeting and financial planning, as it helps determine how much money is available for savings or investments. Tracking total expenses allows for better management of finances. By categorizing expenses, one can identify areas where spending can be reduced. This practice is essential for maintaining financial health and ensuring that income covers all necessary costs while allowing for future growth.