Expense

Meaning:

An expense refers to the money spent to buy goods or services for personal use or business operations. It is the amount you pay to meet your needs, wants, or responsibilities.

Example:

For instance, if you spend ₹1,000 on groceries for the week, that amount is considered your expense.

How to understand expenses:

Expenses help manage daily life by covering basic needs like food, rent, and utilities.

They guide budgeting, helping you plan how to spend your money efficiently.

Importance of expenses:

High expenses can reduce savings and impact financial health.

Tracking expenses helps businesses understand their profitability, as lower expenses can lead  to higher earnings.