Definition
Discretionary Spending
Money spent on wants rather than needs.
This term appears in The Budget Ledger's practical finance glossary.
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.