Step 2 -Your Budget: Fixed Expenses

As we talked about yesterday, we’re going to begin planning your new budget.  There are several different components that will go into this, so we’ll take it a day at a time.  When we’re done, you’ll have a full working budget so you can keep track of everything for the first few months, and plug the gaps in your spending habits. 

Today, we’re going to work on the fixed expenses in your budget.  This will include anything that you know exactly how much it will cost each month.  These are items such as your house or rent payment, insurance, internet charges, home phone charges, cable bills, etc.  So, go ahead and begin thinking and jotting down all of these costs that you can think of.  Even if it seems like a small cost, write it down so you can plan for it.  I find it best to compile the budget in some type of spreadsheet.  It makes it easier to keep track and seek out any information you need.

If you have any questions on whether something is a fixed expense, please comment and I’ll get back to you with my opinion.  Have a great day!