Not All Expenses Taste The Same
You know what might make learning about savings all the more sweeter?🤔 Drinking a nice Jarrito frio 🤤 and realizing that expenses, just like your favorite carbonated drink, come in all different “flavors.”
Three major cost types that fill your “expense soda” bottles are: 🍋 fixed, 🍊variable and 🍓 occasional.
🍋 FIXED EXPENSES🍋
The Balance Blog reports that fixed expenses are recurring costs that stay the same. 💵 These expenses may come every month or once a year or any other recurring way but they are fixed prices that are expected. These can be things like rent, phone plans or the bottle of Tamarindo Jarrito you get from the corner bodega every Friday to celebrate the weekend. 🏖
Variable expenses are things that are still necessary costs, like your utility bill or gas for your car, that vary from month to month. 📆 Like one month you might buy los Jarritos in bulk (with your groceries, which are a variable expense) and the next month you might buy them in bulk TWICE. Es necesario!
These are things that you like to do but that you have discretion over whether or not to spend money on. This includes things like eating out🍛 or streaming subscriptions.📺 We would put Jarritos in this list pero like we said, you need it! Ay, que refresco. 🧖♂️
Now that you know what each expense is, The Balance Blog suggests sorting through all your expenses from your credit cards and bank statements and placing them in their specific categories. ✍️ Doing this will help you see where you can cut back.
Fixed expenses are the simplest to start with placing into your budget since they’re the most difficult to change.🧾 You can refinance a house or move to a lower rent but in general, they’ll stay relatively the same. Reducing variable and definitely reducing discretionary expenses can be easier than reducing fixed costs. 📉 Just like changing your Jarrito order from Tamarindo to Limón is easier than… actually, both those flavors are sabroso so you’ll probably want both. 🤷🏻♀️
The key to not getting overwhelmed by your expenses, no matter what kind, is sticking to a budget.🧮 But your budget doesn’t have to be fixed like your favorite Jarrito flavor is. There’s always room to reassess, recalculate and try other budgeting flavors that will work for you.👍
SUMA has lots of tools to get you moving! So, grab a Jarrito (whatever flavor works best for you!), open up your laptop or phone, and read up on our website or text us HOLA📲 at 323-629-8732. Let’s build wealth juntos! 🤝
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