Your Fixed Expenses and Variable Expenses

Your fixed expenses are ones that you will probably plan on having every month for a while. You want to get these paid off as quick as you can, but starting with a list of what they all are is what you want to do. First we will go over what some examples of fixed expenses are. Some of them that are the most common are:

Loans from your friends and parents, Credit card debt, car loans, home equity loan, other debt payments, medical and dental expenditures, school loans, day care, education costs, your car, gas for the car, the bus, auto insurance, alimony, child support, insurance for your home, renters insurance, personal health insurance, utilities, mortgage, rent, and finally taxes.

Above are the most common fixed expenses that the average person has. These need to be written down or put in a spreadsheet online so you can see what you are spending your money on. Can you do without one of them? Can one of the payments be lowered? These are things that you want to think about and consider. Look at this statement at least once a month.

Your variable expenses are some that you probably have more control over. You should have more control over them, unless they are controlling you. Some of these include:

Fees for your boat, storage fees, donations, cell phone, clothes, memberships, sporting events, golf, vacations, eating out, going to movies, swimming lessons, books, DVD’s, hobbies, groceries, cleaning your house, home maintenance, yard maintenance, retirement account contributions, and investments.

Now there are some of these you want to keep like your investments and your retirement accounts. Some you can do without if needed. Some that most can do without are eating out, going to movies, storage fees, etc. Having a bunch of stuff that keeps you preoccupied is not the best way to live life. You can waste a lot of your time thinking about things you need to do around the house if you have a lot of stuff. Get rid of your old junk, you don’t need it.

Get control of your variable expenses and get rid of the ones that aren’t helping you for the long term. This will give you some extra cash each month to save with.

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