difference between fixed expenses and flexible expenses

Make reviewing your budget a monthly habit.

Subtract the total expenses from the total income. GroceriesĪdd your total fixed and total flexible expenses together. Factor in necessities like gas, food, and utilities, as well as any miscellaneous spending for hobbies and entertainment. Rentįlexible expenses include amounts that fluctuate from month to month. Taking online classes? You may need to repair or replace your computer unexpectedly. Do you have a car? You may have to have an emergency car repair. Think about what counts as an emergency and what you would need to handle the situation. Ultimately, you can contribute as little or as much as you want to your emergency fund. If you rely on income from a job to pay all your expenses, a good goal is to build an emergency fund with enough money to pay your monthly expenses for three to six months. Include an emergency fund allotment in the fixed-expense category. You pay an exact amount on the same date each month. Step 2: Add up your fixed expensesįixed expenses include rent, car payments, membership fees, and anything else that doesn’t change from month to month.

Now that you know your total income, make a list of each foreseeable college expense you’ll have throughout the month and divide it into two categories: fixed expenses and flexible expenses. Student financial aid (scholarship, loan, etc.) List any regular sources of income and total them to find out what you have to spend. Make a list of funds you have available to spend, whether that includes a monthly allowance from parents, wages earned at a job, student financial aid, or a combination of money available. Whether you use an online budget calculator or stick to pen and paper, making a personal budget is easy with these five simple steps. Tuition has been paid and books have been bought, but what about all the other stuff? Being a college student can get expensive, and the idea of handling personal finances may be overwhelming.Ĭreating a budget is not as difficult as it seems – and sticking to it can mean the difference between living it up or living on ramen noodles.

Difference between fixed expenses and flexible expenses