Variable expenditure refers to the costs that can change from month to month, depending on an individual's or household's spending habits. Unlike fixed expenses, such as rent or mortgage payments, variable expenditures can fluctuate based on lifestyle choices, needs, and preferences. Common examples include groceries, entertainment, and dining out, which can vary significantly based on personal decisions and circumstances. Managing variable expenditure is essential for effective budgeting. By tracking these costs, individuals can identify areas where they can cut back or adjust their spending. This flexibility allows for better financial planning and helps ensure that essential expenses are covered while still enjoying discretionary spending on items like vacations or hobbies.