Daily Gains Letter

Expenses

‘Expenses’ are the costs individuals incur to run the daily household activities. Payment to the internet provider, phone bills and insurance can all be considered expenses for a general household. If a household has more expense than the overall income, then chances are they it will need to borrow money.

The same rules apply to publicly traded companies.  Expenses refer to the costs associated with running a company and earning revenue.  If a business has more expenses than revenue, it will need to borrow money.