Reducing Expenses

Expenses

The costs you have and the money you spend

Who has expenses, and can you do anything to reduce them?

Everyone has expenses and you can take action to reduce many of them.

What are the 2 main types of expenses?

Fixed and Variable expenses

Fixed Expenses

Are predictable and consistent from month to month, like rent, car payments, and cell phone bills

What are some example of fixed expenses?

rent, car payments, and cell phone bills

What is something that people may assume about fixed expenses?

You might assume that because these are “fixed”, they can't be reduced, but many of them can, and it can make a huge difference in your budget.

How can many fixed expenses be reduced?

By comparison shopping.

What is comparison shopping?

Comparing prices across different stores, sites, and providers. For example, you could move to a less expensive apartment to reduce your rent or shop around for a less expensive phone plan.

What are some examples of comparison shopping?

You could move to a less expensive apartment to reduce your rent or shop around for a less expensive phone plan.

Variable expenses

are less predictable and change from month to month. Think eating at restaurants, buying clothes, or seeing a movie. Reducing variable expenses is about committing to making thoughtful spending decisions. This often involves saying “no” to some fun opportunities, but the payoff is worth it, literally.

What are some examples of variable expenses?

Think eating at restaurants, buying clothes, or seeing a movie.

Reducing variable expenses is about what?

Reducing variable expenses is about committing to making thoughtful spending decisions.

Reducing variable expenses often involves what?

This often involves saying “no” to some fun opportunities, but the payoff is worth it, literally.

If you're not sure which expenses you can cut down on, what should you do?

Look at your credit card statement. It will list every purchase you’ve charged and its cost, so you can see exactly where your money is going and decide where you’d like to save.

What will looking at your credit card statement do?

It will list every purchase you’ve charged and its cost, so you can see exactly where your money is going and decide where you’d like to save.

What is the benefit of your credit card statement listing every purchase you’ve charged and its cost?

You can see exactly where your money is going and decide where you’d like to save.