Summary
Fixed expenses are the items in your budget that pretty much stay the same amount month after month. variable expenses change in dollar amount each month, usually based on how much you use them. When it comes to planning, these can be a lot harder to predict than fixed expenses.
There are things outside our control (like inflation) that affect how much we spend on variable expenses. But the definition itself calls out our part in these changing costs. If you start taking hot, relaxing baths every day, you’ll pay more for electricity (or gas) and water.
If you want to get super serious about saving, go through your budget and see which expenses you can cut out. Join gas rewards programs (not credit cards!) at your grocery store to save on transportation. Check out free TV streaming service options to save money.
When listing out expenses, don’t start with fixed or variable—start with essential. It usually takes three months of budgeting to get the hang of things. Plan high for variable expenses.
A budget is a planned amount to spend and not a set-in-stone-or-else amount. Get a budgeting app. You don’t have to be a money expert to take care of your finances.
