Expenses Meaning: Definition, Examples, and Translations
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expenses
[ɪkˈspɛnsɪz ]
Definitions
financial
Expenses refer to the money that is spent or paid out for goods or services. These costs are usually related to running a business or maintaining a household.
Synonyms
Examples of usage
- We need to keep track of our expenses to stay within our budget.
- The company is always looking for ways to reduce expenses and increase profits.
personal finance
Expenses can also refer to the amount of money that a person needs to spend in order to maintain their lifestyle or cover their basic needs.
Synonyms
expenditure, outgoings, outlays.
Which Synonym Should You Choose?
| Word | Description / Examples |
|---|---|
| expenses |
This word is often used in everyday situations to refer to general costs or money spent, particularly in personal finance or business settings.
|
| expenditure |
This term is more formal and technical, commonly used in official or financial reports to refer to the total amount of money spent on specific items or purposes.
|
| outgoings |
Outgoings is primarily used in the UK to describe regular, recurring payments such as bills, rent, or other costs that reduce one's income.
|
| outlays |
This term is often used in business contexts to refer to the amount of money spent on a particular project or investment, sometimes implying a significant or initial investment.
|
Examples of usage
- My monthly expenses include rent, utilities, and groceries.
- She had to cut down on her expenses in order to save up for a vacation.
Translations
To see the translation, please select a language from the options available.
Interesting Facts
Economics
- Expenses can be categorized into fixed costs, like rent or salaries, which stay the same every month.
- Variable expenses fluctuate, such as food and entertainment costs, depending on personal choices and consumption.
- Tracking expenses is crucial for budgeting, helping individuals manage their finances and allocate resources efficiently.
Business
- Businesses often categorize expenses into operational, administrative, and capital expenditures to maintain accurate financial records.
- Understanding expenses helps businesses calculate profitability, as revenues minus expenses determine net income.
- Companies may cut unnecessary expenses to improve their financial health and ensure long-term sustainability.
Personal Finance
- Many people use budgeting apps to keep track of their monthly expenses and identify areas to save money.
- It's recommended to review expenses regularly to find subscriptions or services that aren't being used.
- The 50/30/20 rule is a popular budgeting method: 50% of income for needs, 30% for wants, and 20% for savings and debt repayment.
Cultural Implications
- In some cultures, showing generosity through spending money for social events is highly valued.
- The approach to expenses can vary between cultures, where frugality may be celebrated in one, while extravagant spending is a sign of success in another.
- Expense reporting practices can differ internationally, with some countries having stricter regulations for business expenses than others.
Origin of 'expenses'
Main points about word origin
- The word 'expense' comes from the Latin word 'expensum', which means 'to pay out'.
- It entered the English language in the early 15th century and initially referred to general costs.
- Over time, 'expenses' grew to include specific categories of spending, especially in business.
The word 'expenses' originated from the Latin word 'expensae', which means 'charges, expenditure'. Over time, it has evolved to refer to the money spent on various items or services. Managing expenses has always been a crucial aspect of financial planning, both on a personal and business level.
See also: expensable, expense, expensive, inexpensiveness.