Discretionary Budget

Written by True Tamplin, BSc, CEPF®

Reviewed by Subject Matter Experts

Updated on February 26, 2023


A discretionary budget is an unspecified lump sum that states what the amount is for, what the maximum sum overall will be, and possibly specifies also a maximum sum per item.

Discretionary budgeting is useful when the expenditure for each item is small in terms of value.

The administrative cost of dealing with each item far outweighs the control benefit available. However, control is maintained within the lump-sum budget.

Discretionary Budget FAQs

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.