Expenses

Table of Contents

Fixed Expenses should not eat away the paycheck

Fixed expenses are those that remain constant within your budget, although they may change occasionally. For example, you may switch to a new cell phone service provider, or your landlord may raise your rent.

Fixed expenses are paid at regular intervals and may vary slightly, change significantly or stay the same, depending on the type of expense. Monthly fixed expenses are common, although fixed expenses may also occur weekly, quarterly, twice a year and yearly. Knowing your bills’ intervals can help in budgeting. If you pay car insurance twice a year, for example, divide the payment premium by six to get the monthly cost and include that amount in your monthly budget.

Examples of fixed expenses include:

  1. Rent or mortgage payments
  2. Car payments
  3. Other loan payments
  4. Insurance premiums
  5. Property taxes
  6. Phone and utility bills
  7. Child care costs
  8. Tuition fees
  9. Gym memberships

If we are looking for ways to lower your monthly expenditures, reducing our fixed costs is a great start.

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