Variable expenses are costs that can change from month to month, depending on your spending habits and needs. Unlike fixed expenses, which remain constant, variable expenses can include items like groceries, entertainment, and utility bills. These costs can fluctuate based on factors such as usage, lifestyle choices, and seasonal changes. Managing variable expenses is important for maintaining a balanced budget. By tracking these costs, individuals can identify areas where they can cut back or adjust their spending. This helps in achieving financial goals and ensuring that overall expenses do not exceed income, promoting better financial health.