Oh, those fixed costs. They’re like old friends. They’re reliable, predictable—you can always count on them to be there. Friends who are expensive, most of the times. Friends you’re not necessarily happy to see. Friends you wouldn’t miss if they suddenly disappeared.
Friends that you don’t even really like, if we’re being honest, so maybe friends is the wrong word here? Fixed expenses are probably one of the easiest things to manage in a budget. It can be helpful to know what you should expect.
Eliminate some of the uncertainty that comes with living a busy life by creating a monthly budget that includes fixed expenses so that you can get an honest, big-picture perspective of your finances.
What is Fixed Expense??
A fixed expense stays the same from month to month—the amount due and the frequency of your payment don’t typically change. Fixed costs can include rent, mortgage, car payments, loan payments and subscriptions. They also include cell phone bills, gym memberships, childcare expenses, and utility bills such as cable or internet.
Most people begin budgeting by making a list their fixed costs, adding them all up, then subtracting…