ESL Podcast 563 - Reducing Household Expenses

finances - how one manages one's money; the way that one saves and spends money and/or the amount that one saves and spends

They review their finances together at the end of each month, balancing their checkbook and paying the bills.

financial planning - the process of planning for one's financial future, especially how one will pay for retirement and major expenses like a child's wedding or college education

They took a class in financial planning to learn about their options for saving for retirement.

household budget - the amount of money spent each month, and the way in which it is spent, by a family or a group of people who live together

Fifty percent of their household budget is spent on rent and the rest is for transportation, food, clothing, and entertainment.

all about - very much involved or interested in something; with a strong interest in or passion for something

Vince is all about football and never misses a game on TV.

bottom line - profit or loss; the amount of money that a person or organization has made or lost at the end of a certain period of time

If the company can't improve its bottom line, it will go out of business by the end of the year.

spending patterns - the way in which money is spent; the amount of money spent in each of several categories

They changed their spending patterns by cooking at home more often and eating out at restaurants less often.

to underestimate - to guess or believe that something is smaller, less, and/or less important than it actually is

Phuo underestimated her own strength and was surprised when she was able to pick up a 100-pound weight.

expense - money that is spent on something; cost

We could reduce our transportation expenses by taking the bus instead of driving our car to work each day.

discretionary - optional; something that one has a choice about

The company gives managers a large discretionary budget that they can spend however they want, as long as their department continues to perform well.

spreadsheet - an electronic document created with Excel, Lotus, or a similar program, used to store numbers and data and make calculations based on that information

When they were trying to buy a home, Leola created a spreadsheet to compare the cost per square foot of each of the homes they looked at.

nonessential - something that is nice to have, but is not necessary; something that one can live without

If you live in a remote area, your car is probably an essential, but if you live in a city with lots of public transportation options, it's probably a nonessential and you could save money by selling it.

to do the math - to look at the numbers; to base one's decision on calculations rather than vague (unclear) ideas

Once they did the math and considered the cost of taxes, transportation, babysitting, dry-cleaning, and business lunches, they realized that they could actually save more money if Becca quit her job and stayed home to take care of the children.

to cut back - to reduce; to decrease the amount of something

The school is trying to cut back its costs by serving less expensive food in the cafeteria.

drastically - dramatically; very much; importantly; in a big way

Living in New York City is drastically different from living in a small agricultural town like the one I grew up in.

retirement - the period of time after one has stopped working, usually beginning when one is 65 years old

Cristian looks forward to a long retirement when he can go golfing for hours every day.

to afford - to be able to pay for something; to have enough money to buy something

If we want to be able to afford a good college education for our children, we need to start saving money now while they're infants.

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