when times get tough and short term cash flow issues emerge managers and individuals often try to weed out any unnecessary costs discretionary expenses are normally the first to go because stopping them is unlikely to have a major impact on a business or household 
corporate discretionary expenses are usually linked to the promotion of a company s market position buying the raw materials used to produce goods is usually considered essential spending money on employee training programs is not usually considered essential individuals may also find times when they need to consider cutting out certain expenses for example a person who runs into financial difficulties is more likely to prioritize paying utility bills over financing a vacation understanding and identifying your non discretionary and discretionary expenses and which ones matter most to you can help you save set your goals and plan for your financial future special considerations