Definition
Discretionary Spending
Money spent on wants rather than needs.
Discretionary spending is everything that is nice to have but not essential: restaurants, entertainment, hobbies, travel, and impulse buys. It is the most flexible part of any budget.
In the 50/30/20 rule this is the 30 percent bucket. Trimming discretionary spending is the fastest way to free up money for savings or debt without touching your essential bills.