Types of Expenses


Fixed Expenses: Fixed expenses are payments that typically do not change from month to month. These types of expenses usually consist of regular payments like mortgage payments, rent payments, insurance premiums and loan payments.

Fixed Expenses

  • Mortgage Payments
  • Rent Payments
  • Auto Insurance
  • Health Insurance
  • Homeowners Insurance
  • Life Insurance
  • Child Care Expenses
Variable Expenses: Variable expenses are bills that may change slightly month to month. This section contains expenses that the amounts that change slightly month to month you need to put aside for certain bills each month. You can just use a twelve month average amount for each variable expense.

Variable Expenses
  • Bank Service Charges
  • Clothing
  • Gasoline Expense
  • Gifts Given to Others
  • Groceries
  • Home Maintenance
  • Home Repairs
  • Medication
  • Pet Expenses
  • Utility Bills
    • Cable Television
    • Cellular Telephone
    • Electric Service
    • Fuel Oil
    • Gas Bill
    • Internet Access
    • Telephone Bills
    • Trash Bill
    • Water Bill
Discretionary Expenses: Discretionary expenses are expenses or bills that may or may not be payable every month or that may vary. This section contains expenses that the amounts will probably be different or change from month to month. Some of these bills or expenses are at your own discretion and can be regulated to help control your spending habits. To set up your budget you can just use a twelve month average amount for each Discretionary expense

Discretionary Expenses
  • Cleaning Service
  • Dining and Eating Out
  • Dues and Subscription
  • Hair Care and Grooming
  • Health Club Dues
  • Laundry and Dry Cleaning
  • Lawn Care
  • Newspapers and Periodicals
  • Postage and Delivery
  • Religious Donations (Tithing)
  • Retirement Savings
  • Veterinarian and Pet Care
Expenses you can save on!

Fixed Expenses

It is very important to make sure and get your fixed expenses under control with the lowest rate or price possible. Consumers should always try to look for ways to save on their fixed expenses. It's always wise to try to cut back and save on fixed monthly expenses whenever and wherever possible. Consumers might also consider trying to eliminate and get rid of some fixed expenses entirely if at all possible.

Variable Expenses

It is also very important to try to save as much as you can on your variable expenses. These variable expenses can change monthly but it you save a little on them it will save you hundreds or thousands of dollars annually. Consumers should always want to make sure they are getting the best deal they have available on utility services. Your utilities include services like electric, cable, gas, telephone, fuel oil, etc. By contacting or calling the service providers you can see if they have introduced any new plans or have any new deals. Most providers will also have available free evaluations or some will also do free usage analysis to see if you can save on usage or if they have another program that's right for you.

Discretionary Expenses

It is also important to try to save on your discretionary expenses. You also might consider getting rid of some discretionary expenses entirely. These are expenses that are not necessary and some of which you can do yourself instead of hiring others. For example of you have a lawn service this is something you can do yourself and eliminate this expense totally. Another example is if you have a cleaning service or a house keeper cleaning your home; if you do you might want to manage your time and clean your house yourself and eliminate that expense totally. Many of the discretionary expenses are not necessary expenses and expenses you can eliminate and save hundreds or thousands of dollars yearly.

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