Mom’s Money

What About Those Fixed Expenses?

I’ve talked quite a bit about creating a family budget that tracks those variable expenses, you know, the expenses that we have some control over, like groceries, hair cuts, clothing, etc.  Keeping a journal of what you spend on items other than your fixed expenses is a great way to see where the money is going.  But, here I’d like to turn tables on you a little bit and suggest that even the so called “fixed” expenses are not necessarily fixed.

There are several ways to cut back on our monthly bills.  Most of us have five or six bills that we receive every month.  Some fluctuate a bit every month (electric, gas, water, phone), while others are the same amount each month (mortgage or rent, and insurance).  Whether fluctuating or fixed, you may be able to do something about each of these depending on your situation and how willing you are to make changes.

Starting with the fluctuating monthly bills, if you have an opportunity to switch utility companies, check into their rates.  Many companies are willing to negotiate for your business.  This includes switching phone companies to get the best possible deals. 

Even if you don’t switch companies, you can cut back on usage to save money.  Simple solutions include turning down your water heater, adjusting your thermostat and wearing seasonally appropriate clothing inside the house, not letting the water run when you’re brushing your teeth or even washing your face, shortening your showers, washing only full loads of clothing, and hanging out laundry to dry.

There are several ways to reduce your fixed expenses, as well.  Check into your insurance, especially your car insurance.  Many people switch their policy every year to take advantage of the new customer rates that every company offers.  That’s the easy one.  When it comes to mortgage or rent payments, the options may not be there.  However, when truly strapped for funds, we can get pretty creative and find ways to cope. 

Call your mortgage company and ask for a meeting to discuss lowering your monthly payment.  Is it time to refinance your home at a lower interest rate?  Educate yourself about your mortgage.  It’s foolish to not know what type of mortgage you hold and what your options are. 

If you are renting talk to your landlord, but only if you are in a position to move if needed.  Would they give you a “good tenant” discount for paying your rent in a timely fashion over the years?  Would they lower your rent for a few months or more if you did some maintenance for them?  Can you do your own yard work for a reduced rent?  If you have a good relationship with your landlord, they may not want to lose you.  Remember, do this only if you are willing to look elsewhere for a more affordable apartment or condo.

Even one of these money saving methods may prove to be rewarding enough to get you started on a crusade!  Keep track of the savings you’ve created and soon you’ll be rewarding yourself for a job well done.