Rent:

A mortgage or rent payment is oftentimes one of the biggest fixed expenses most families incur each month. Typically when a person is in the market to buy a house the real estate agent is most likely going to showcase the most expensive rentals FIRST. This will always be the highest home in your agreed-upon price range. If you need to make a significant change to your budget moving to a less expensive place would be in your best interest.

Although moving may be expensive be sure to factor that into your potential savings and financial budget. If you are relocating to save on fixed expenses make sure you will be saving enough to make the move worthwhile. For homeowners consider the option of downsizing to a smaller home or apartment. Also refinancing an existing home can be a great way to get a better rate or reduce your monthly payment. 

Home and Car insurance:

In order to protect your home and car against potential damage and expenses, you have to have insurance. Shop around the market to compare prices. This will be good for first-time purchases or if you are changing existing coverage. Increasing your deductible will help reduce the monthly payment. Before doing this be sure you have access to the increased deductible amount should an accident occur.

Car Payments:

Of course, nobody wants to be caught driving a 1987 honda in 2022. (Is that even possible? But you get what I’m saying. P.s I LOVE Hondas) Most people incur excessive care payment expenses when opting for a newer model vehicle and popular brands.

The best thing you can do is get something that you can pay for in full or something you can afford. This will ensure you don’t struggle to make monthly payments. If you owe more than your car is worth, consider trading your vehicle for one you can buy outright instead of making monthly payments. Also, consider getting rid of a vehicle that is paid off or financed if it is no longer in use. 

Cable and Internet:

Although the internet is vital for school and work, payment reduction can always be done in this area of fixed expenses budget. Instead of cable invest in just the internet. If you happen to have the urge to watch tv try streaming it online. Consider different streaming options such as Netflix or Hulu. These typically come at a fraction of the cost and contain most or all of the shows you normally enjoy. This allows you to choose what you want to watch at any point in time.

Phone:

People these days rarely use home phones. If you work from home having a landline may be ideal. If you rarely use the home phone there isn’t a need to have one unless you get it at a cheaper price using a bundle deal. If it costs you more than its use you should probably ditch the bill. Check with your cell phone carrier for any promotional deals to lower your monthly payments or save on a new phone.

Loans and Tuition:

Tuition payments are one fixed expense that may be hard to reduce when your child is in college or private school. Look into applying for scholarships or grants when applying for school or continuing education courses. If you have an existing loan try to refinance the loan through a private lender to reduce or lower the payment. This will be very beneficial in gifting your child financial freedom. 

Other installments:

Try to pay off debts as quickly as possible. The snowball method is the best way to do this. Once you have no debt try to commit yourself to staying that way.