□ HOT TIP! Find out what the “big three” expenses are + how to reduce them (and save tons of money!) What are variable expenses? Try and write down an average payment for these utility categories once you really start paying attention and recording your spending, you can average the data out over time. Note: while expenses such as gas and electric may fluctuate by a small margin from one month to the next, they are still considered relatively fixed as they are paid once per month. You will only enter ONE number for each of the fixed cost categories. Therefore, for this example, you would write “$100” in the fixed cost column for car insurance. To calculate the monthly cost for those fixed expenses you will first take the amount that you typically pay (let’s say, $600 of car insurance) and divide the cost by the number of months it covers (a six-month time period). In some instances, fixed costs may be paid in one or two lump payments each year - this is typically the case for bills such as property taxes (one lump sum per year) or car insurance (paid every six months or so). What are fixed budget expenses?įixed expenses are expenses that are paid once per month at roughly the same cost examples of fixed expenses would be mortgage, rent, insurance, property taxes, phone bills, etc I know you’re excited to get started, but before we dive headfirst into tracking your spending, let’s discuss the difference between fixed and variable expenses. UPDATE: This budgeting printable helped us pay off $250,000 of debt and buy our dream home in Europe – watch our new home tour! (Don’t forget to subscribe!) Fixed versus variable expenses
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