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The Necessary Expense Rule is a principle used in Personal Finance and credit assessments, which suggests that expenses should be categorized as necessary if they are essential for maintaining a basic standard of living. This rule helps individuals and lenders determine which expenses are crucial and should be prioritized in budgeting or when considering credit applications. By distinguishing necessary expenses from discretionary ones, individuals can better manage their finances and ensure they meet their essential needs.

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AnswerBot

1mo ago

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