 TITLE: What Is Discretionary Spending? CONTENT: Why You Should Track Discretionary Expenses\n-------------------------------------------\nIt's important to look over your discretionary expenses because getting clear on where your money goes provides a roadmap toward reaching your financial goals. They are also the lowest-hanging fruit when it comes to saving money if your financial situation changes, or you'd like to spend more elsewhere.\nWhen you list out your discretionary costs, think about how important they are to you and whether they add much to your life. You may find some superfluous expenses and consider eliminating them, but the goal in identifying and prioritizing your discretionary purchases isn't necessarily to minimize your \"fun\" spending. Rather, it's to make sure you're emphasizing what's most important to you.\nPerhaps you've been wanting to build up your emergency savings fund, but there never seems to be enough money left over at the end of the month. Making a list of your discretionary expenses may help you identify some ways to make these goals more attainable.\nMaybe you want to max out your retirement investment contributions this year or build up a down payment for a house. Once you're clear on those priorities, you can look at your budget to decide what you might want to give up in favor of a big picture dream.\nAnother reason budgeting is helpful is that it allows you to anticipate discretionary expenses coming up later in the year. If Mom's birthday is two months away, you can begin saving now for the great gift you have in mind. Or, if your friend is getting married next year, you can make a savings plan to set aside a bit of your income every month toward a gift and travel costs. Planning ahead for big discretionary expenses reduces the chances that you'll feel strapped for cash by trying to cover the costs all at once. END