HLT 605 Grand Canyon Week 3 DQ 1

Within a budget there are two categories: mandatory and discretionary. In which categories do most public health programs fall? Provide an example of an expenditure that is considered mandatory. Justify your rationale. Provide an example of an expenditure that is discretionary. Justify your rationale.

 

 

MORE INFO 

Mandatory and discretionary budget categories

Introduction

You’ve got a lot on your plate, especially if you have children. But what’s the best way to structure your budget? Should everything be mandatory, or should there be some discretionary spending as well? In this post we’ll look at some of the pros and cons of both approaches. We’ll also explore why many frugalistas (or those who prefer to live below their means) recommend having a mandatory category like groceries or child care expenses in addition to a discretionary category like entertainment or dining out.

Debt repayment

Debt repayment is a mandatory category. The government has to repay its debts, so it’s not discretionary. This is what makes debt repayment a necessity: there’s no way around it!

Food and drinks

Food and drinks are a necessity. They can’t be avoided, but they’re not mandatory. You don’t have to spend money on food, but you will if you want your body to live long enough to enjoy the things that money can buy.

Food and drinks are a discretionary category—you have the freedom to choose how much or little time and effort goes into preparing these items for yourself or others around you. Food and drink aren’t necessities; they’re luxuries!

Health insurance

Health insurance is a necessity. It’s one of the mandatory budget categories and can be paid for with pre-tax dollars. You may also want to consider paying for it with post-tax dollars, if you don’t already have health insurance coverage through your employer or another source (e.g., Medicare).

Housing and utilities

• Rent or mortgage – If you rent, you’ll have to pay the landlord. If you own your home, this category includes mortgage payments and property taxes.

• Utilities – This includes electricity, gas and water bills; internet access; cable TV service (if available); trash pickup services (if they’re provided by your city/county); telephone service on landlines only—no cell phones! Insurance premiums can also be included here if they’re paid directly out of pocket each month instead of paying an insurance premium directly into an account like 401(k)s do for retirement savings plans such as IRAs or Roth IRAs where contributions are made over time rather than all at once with immediate tax consequences due upon withdrawal without penalty taxes applied upon withdrawal from retirement funds invested into individual retirement accounts such as 401(k)s after age 59 1/2

Life insurance

Life insurance is a way to protect your family’s financial future in case you die. It’s important to have enough coverage to replace your income, but it’s not a savings account. A life insurance policy is like buying fire insurance on top of owning an expensive house: if the house burns down, you’ll get paid out in full; but if you’re killed by fire or other calamities that were beyond your control (like lightning), then there won’t be any money left over for anyone else.

If you are married and have children under 18 years old who depend on their parent(s) financially as well as emotionally for support, then life insurance is essential for ensuring that your family does not suffer from this tragedy—even though death may seem far off at times during everyday life!

Personal care

Personal care is a category that can be discretionary. This means that you must fill out a form and explain why you need the item, but it’s not mandatory. For example, if your hair is falling out because of stress and anxiety, then having a haircut might help your mental health by taking away some of the pain in your life. However, if you’re already getting regular haircuts regularly (and have other ways of dealing with stress), there may be less need for this item on your budget than if say: “I’m going through puberty.”

Personal care also includes items like manicures/pedicures and facials/massages which are often used by people who don’t necessarily need them but enjoy them nonetheless!

Retirement

Retirement savings is a good thing. It’s the last thing you should do before retirement, but that doesn’t mean it’s too late to start.

The amount you should save depends on your age and income. If you’re younger than 25 years old and making less than $30,000 per year, try saving at least 10% of your paycheck into an IRA or 401k (or both). If this sounds like too much for your budget, set up automatic payments from the beginning of each month until it balances out over time. After all, one of the best ways to save money is by setting yourself up for success—and having an automatic pay stub is just one way!

If these numbers don’t work out for whatever reason (like if they’re higher), consider contributing more toward retirement plans like TSPs (the Thrift Savings Plan) so that when needed later down the road when Social Security kicks in full force…you’ll still be able to enjoy some freedom without feeling overwhelmed with debt obligations!

Transportation

• Car payment

• Gas and tolls

• Parking

• Car maintenance

Auto insurance

Auto insurance is a mandatory expense for most people in the United States. It’s required by law, and if you don’t have auto insurance, it’s illegal for your insurance company to pay claims on your behalf.

Auto insurance companies typically sell policies through independent agents or brokers. The process of buying an auto policy can be complicated and confusing because there are so many different kinds of policies available (and each one has its own unique set of rules). In short: Make sure that you understand what type of coverage you need before buying anything; consider how much it will cost; find out if there are any discounts available through certain companies; make sure there aren’t any other factors affecting price such as where you live or whether or not someone else drives regularly in addition to yourself

Cable, phone and internet

• Cable, phone and internet are a mandatory category. They’re important to have in order to stay connected with the outside world and make sure you don’t lose a job opportunity because of poor communication.

• You should include the cost of these services in your budget. You can’t get rid of them—they’re part of life!

Children’s activities

• Children’s activities are not necessary. Your child may be old enough to help with chores, but it’s not necessary for them to have a personal assistant or nanny 24 hours a day.

• Children’s activities are optional. You can opt out of the children’s budget if your child isn’t old enough or doesn’t want one at all!

• Children’s activities should be paid by the parents (not the government). If you prefer to pay for your kid’s nanny yourself, that’s fine too — just know that there will be no reimbursement from us later on down the road when we find out about this secret life of yours!

Cleaning supplies

Cleaning supplies are a necessity. If you don’t clean, it will get dirty and smelly and make your house feel unclean. You could use a cleaning service, but that will cost more money and take longer than doing it yourself. Neither option is ideal because both require time spent away from the computer, so we recommend hiring someone who can do all of the work for you (or at least supervise) so that everything gets done quickly and efficiently!

Clothing and shoes

It’s important to remember that clothing and shoes are not the same thing. Your budget should include both, but it’s also important to keep in mind that clothing is a necessity while shoes are a luxury.

You can be frugal with clothing purchases if you know how to do so, but you will need money for good quality shoes if you want them to last longer or stand up well against wear and tear (i.e., walking).

Entertainment and hobbies

• Entertainment and hobbies are optional, not mandatory. They’re not essential to your health and well-being. You can be happy without them, but you won’t know unless you try!

• Entertainment and hobbies aren’t a requirement of the job description either—they’re just an option that’s available if you want them.

• If they’re not something that makes sense for your life right now, then don’t do it; find other ways to spend time or find other things in life that will bring you joy and make life more fun (and maybe even save money in the process).

Furniture and home improvement costs

Furniture and home improvement costs are one of the most common categories. In fact, it’s often difficult for people to figure out how much they should spend on their furniture and appliances without consulting with a professional. If you’re not sure where to start, here are some things to keep in mind:

• Buying used is an excellent way to save money on new purchases. You can often find great deals on secondhand items at flea markets or rummage sales, which means that no matter what kind of budget you have, there will be something at least affordable out there! Just make sure not only does the piece fit into your current decorating scheme but also that it doesn’t have any defects (e.g., holes).

• Check out online retailers such as Amazon Prime Day [1] for big savings when buying electronics like TVs and laptops; this is especially useful if those products need warranty replacements later down the road!

Gifts and donations

• Gifts to charity. If you want to give money or property away, this is the category for you. You can donate cash and property (like real estate), as well as other physical objects like artwork or antiquities—even if they’re not yours!

• Gifts to friends and family members. This category includes anything that’s given voluntarily by one person (or group) to another person(s) whether directly or indirectly through an organization such as a church or temple; it does not include any gift given by a third party who receives no benefit from it except perhaps emotional support from the giver during times of need.

Grooming products, including haircuts and manicures

Grooming products, including haircuts and manicures, are a discretionary category. This means they are not required by law to be included in your budget.

However, if you want to maintain a healthy lifestyle and look good at the same time, it’s important that you treat yourself to some grooming products every once in awhile! Grooming is one of those things people don’t think about until it starts affecting their health or appearance negatively—and then they find themselves spending too much money on unnecessary items like shampoo or conditioner when all they need is maybe just a new razor blade from time-to-time (or even once!). So try not letting yourself get into debt by buying stuff that isn’t necessary; instead focus on finding ways for yourself so that this doesn’t happen again!

It’s good to have a mandatory category (necessities) and a discretionary category.

You can think of a discretionary budget category as the “nice to have” items. They’re not necessarily critical, but they’re nice to have. For example, if you want to buy yourself a new TV, this is something that wouldn’t be considered essential—but it’s something that would make your life better and more enjoyable.

In contrast with this type of spending (discretionary), mandatory spending refers to necessities like food and housing for families that aren’t able to afford those things on their own. While these are necessary for survival, there’s no way around it—they’re not going anywhere! This means we’ll always need some amount of money left over after meeting our basic needs so we can enjoy ourselves by doing things like eating out sometimes or buying new clothes every once in awhile instead of wearing what we already own every day all year long just because that’s what everyone else does.”

Conclusion

If you’re just starting out with budgeting, or if you think your budget is getting out of control, it’s time to take a look at all your categories and see where you can make adjustments. You’ll be able to save money, have more fun and feel better about yourself when you get organized with these two categories!