Fixed Costs vs Variable Costs
Every month we have bills we have to pay. They aren't luxury items or extras. There are lots of ways to reduce your fixed costs when you are working on a limited budget. I just recently trimmed down all of my variable cost as well as some of my fixed costs. Most people think of variable vs fixed when they are running a business. I have started running my household the same way I would run a business.
Fixed costs are bills that you pay every month and are the same amount every month, your rent or mortgage is an example of a fixed cost. The payment you make every month is the same and it pays for a necessary service or good.
Variable costs are bills or purchases that you make every month that change depending on usage or consumption. Your electric bill, grocery bill and gas bill are variable costs.
There are TONS of ways to lower your variable costs each month. I'll cover than in later posts. There are ways, however, to lower your fixed costs: rent, cable, phone, car insurance etc.
My fixed bills every month are: rent, car insurance, phone, cable, and payments for my timeshare.
I can't help at all with mortgage payments, but there are professionals out there who can. If you work at a low wage job you can check to see if you are eligible for Section 8 Housing. Check to see if the complex you live in offers Section 8 Housing.
Don't stick with the company you buy your car insurance from just because it's convenient. When I moved to Florida and finally got around to registering my car in FL I needed new car insurance. I was using Esurance, because it was the least expensive option in New Orleans. I shopped around in Orlando and got a quote for $55 a month in Orlando from State Farm. I called Esurance to see if they could match it. They couldn't. Why? I don't live in the city of Orlando, I live in unincorporated Orange County. That lowered my rate with State Farm, but Esurance doesn't have a matrix for people living outside of the city borders. Shop around. You can multitask and get online quotes from companies like Progressive while you call others who aren't included in Progressive's best quote program! Take the extra hour or two and you can save 50% on your car insurance!
There are so many ways to save on your phone bill I don't know where to start! Check with your employer to see if they offer any deals or discounts with a specific provider--it might be worth your while to switch! Some carriers will even pay out your old contract if you switch. I saved 19% on my cell phone bill because my employer has a deal with AT&T. Switch to a family plan if you have more than one phone line on your bill! Several carriers are also offering discounts if you bring in new customers!