![]() ![]() For instance, say your hourly rate after taxes is $18. In our family, we say, “I like this sweater, but not $40 worth.” Or you can evaluate a dinner out or other expense based on the hours you’d work to pay for it. Put your spending in perspectiveĪnother great idea is to think about what you really want in terms of how much money you make. ![]() Acknowledging and accounting for the natural and regular seasonal variation in your expenses will help you better prepare for them, and may allow you to reduce them. Other months offer the promise of reduced variable expenses (a week with generous in-laws at their lake house) or increased costs (because everyone in your family happened to be born in February). Some expenses hit only every quarter (SiriusXM radio) or twice a year (dental cleaning copay). It’s smart to look at the year ahead rather than just the month. Sometimes the act of pausing to think is enough to keep you from swiping your credit card. Before you buy something, think about whether you really want or need it. (Yes, I do no, it wouldn’t.) You can try to whittle down your expenses in the same way. You’re supposed to ask yourself whether you really want that bag of M&M’s or whether an apple would be just as satisfying. One of the secrets to staying slim is to be mindful about what you eat. Evaluate your purchases and make sure they give you pleasure equal to what you spend on them. You might actually prefer bringing your lunch from home rather than eating yet another dejected hamburger from the work cafeteria, thereby reducing a variable expense. However, other things you spend on may be more from habit than for pleasure. The first sip, and the 30 sips after that one, make you feel good - and feeling good is one of the key reasons we earn and spend money. If you really enjoy that Starbucks every morning, it’s probably OK to get it. You’re pretty much committed to your rent, but you’ve got leeway in what you do with your other money each month. These five tips will help you manage your variable expenses so you can stay on budget: A month of dining out a lot, buying a wedding present, replacing a muffler or paying your property tax bill, and your variable dollars are gone and then some. Your variable costs are harder to nail down, and those are the ones that can really blow your budget. You know you’re going to have to pay the same amount each month, so you plan for it and cough it up regularly. Fixed costs are those that stay the same each month, like your rent or mortgage payment, cable package, gym membership, cell phone bill, car payment, the dating service you signed up for and can’t get out of. Some of us do pretty well with the fixed-cost part of the budget. It’s a good idea to have a budget, even if it’s an informal one. There’s always something in your budget that was unplanned, and, thanks to NerdWallet, we’re able to provide you with five excellent tips for managing those pesky extra costs you don’t always see coming. Maybe your bank charges you an unexpected fee. Maybe that fancy dinner cost you more than you thought it would. However, no matter how strictly you follow your budget, your cost of living can always fluctuate. Whether you have private, federal, or no (!) student loans, budgeting during and after school is crucial. ![]()
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