Fixed / Variable Expense Budgeting
A. Fixed Monthly Expenses: These are the Bills you have to pay ONCE a MONTH. These Amounts are USUALLY the SAME. Examples: Phone Bill, Cable Bill, Car Loan, Mortgage, Education Loan B. Variable Monthly Expenses: These Bills you also have to pay ONCE each MONTH. The PAYMENTS will VARY based on USAGE. Examples: Water Bill, Electric Bill, Heat Bill, Gas (for car), Food. 1. If you are doing your May Budget – you NEED to use LAST YEARS May’s PAID utility BILLS for your Budget AMOUNT. (Use LAST Month’s (April’s) costs for Food and Gas) C. Fixed Yearly Expenses: These are the Bills you pay ONCE a YEAR. Examples: Sewer, Homeowners Insurance, Car Insurance, Life Insurance 1. Use the PREVIOUS PAID BILLS for your BUDGET AMOUNT. D. Variable Yearly Expenses: These are payments for CAR REPAIRS. Examples: Oil Change, Tires, Tune Up, Brakes, Battery, Belts, Shocks, etc. 1. Must Keep ALL Bills/Receipts as long as you drive the car. 2. To determine the Weekly Budget Amount – See the calculations on the *VEHICLE MAINTENANCE RECORD* E. Quarterly Expenses: These are Bills you pay ONCE every 3 MONTHS. Examples: Real Estate/Property Taxes, County Water Treatment. 1. Should Keep a YEARS worth of PAID BILLS for Reference 2. Real Estate Bill may come a year in advance BUT all 4 payment amounts MAY NOT be the SAME. Be careful. The BUDGET TEACHER