Continuing through Financial Literacy Month the next step is to identify and document your fixed monthly expenses.
Fixed expenses are those that do not vary from month to month. Examples of fixed expenses include car payments and mortgage or rent payments. Fixed expenses are the most difficult to manipulate. There is a worksheet on the website to determine how much money per month you must dedicate to cover your fixed expenses.
Once you figure up your fixed expenses and deduct them from your income each month, then you know how much money you have left to spend on your variable expenses and other expenses.
That is why it is important to have a handle on your fixed expenses and keep track of how you spend your money on other things.