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Why might variable expenses change a great deal at different times of year? Heating and cooling costs might vary considerably. Income taxes and withholdings may increase or decrease. Car loan payments become higher in certain seasons. Discretionary spending may rise when fixed expenses rise.

Ask by Nunez Coles. in the United States
Feb 04,2025

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Variable expenses change throughout the year due to seasonal variations in heating and cooling costs, increased discretionary spending during holidays and special events, and fluctuations in income that affect tax withholdings.

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Bonus Knowledge

Variable expenses are like a rollercoaster ride, swaying with the seasons and your lifestyle. For example, heating costs can spike in winter while cooling bills soar in summer, both creating dramatic fluctuations in your monthly expenses. Plus, think of seasonal trends—like those vacation splurges in summer or holiday shopping in winter—when discretionary spending can jump as we embrace the spirit of the seasons! Additionally, income taxes can be another wild card. As tax season approaches, many folks see withholdings rise to cover their anticipated tax liabilities, which can vary from year to year based on changes like income, deductions, or credits. This can lead to a significant shift in what you take home versus what you owe, making the financial landscape look very different depending on the time of year!

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