The best part? You only have to make that money-saving decision once to see the reward. However, that $85 per month will turn into $1,020 in one year. The little bit you save on your fixed expenses can add up fast.įor example, if you spend $1,100 instead of $1,185 per month on rent, the quality of your apartment and neighborhood may not change much. This is a great alternative to being frugal with your other spending decisions, such as buying new clothes or ordering takeout. So when you lower your fixed expenses, you lower the percentage of your budget that’s devoted to them. That’s because fixed expenses tend to take up the largest percentage of your budget. When you lower your fixed expenses, you automatically save more money each month or pay period. For example, consider a cheaper gym membership or a different streaming service. Additionally, shop around for alternative car insurance, health insurance, life insurance and homeowners or renters insurance plans to save more money. If you’re signed up for a monthly service that you rarely use, there may be an alternative plan with a lower price. Some fixed expenses may be discretionary, like a gym membership or streaming service subscription.Īlthough these bills are consistent each month, you may still be able to lower their costs.
#Variable expenses examples plus
Typically, these expenses can’t be easily changed. On the plus side, they’re easy to budget for because they generally stay the same and are paid on a regular basis. Typical fixed expenses include car payments, mortgage or rent payments, insurance premiums and real estate taxes.
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