What is meant by residual expenditure?

Residual expenditure refers to the amount of funds remaining after all essential expenses, such as fixed costs and necessary operational expenditures, have been accounted for. It represents the discretionary income available for non-essential spending or investment. This concept is often used in budgeting and financial planning to assess how much can be allocated to savings, leisure activities, or other non-mandatory expenses. In essence, it reflects the financial flexibility available after meeting necessary obligations.