Do you know the difference between your variable and set expenses? When it comes to budgeting it is important to identify your variable expenses, because they are the ones that you can change. Your set expenses are not going to change; they will remain the same from month to month. Your variable expenses change from month to month. Often it is best to average these expenses over a twelve-month period, and then budget that amount each month.
Here are variable expenses that you may consider set expenses, because they are bills that you have to pay each month. One is your electric and heating bill. These are variable, and you can do things to reduce how much electricity or gas you use each month. You may be surprised at how much you can save by turning down your thermostat, and turning out the lights.
Another variable you may consider set is your phone service, Internet or cable bill. These bills can often be reduced down to bare minimums. Then these may become set, because the amount does not change every month. If you use a lot of long distance you may consider switching to a Voice Over Internet Provider. We do this and pay twenty-four dollars a month for unlimited long distance and local service. This is much cheaper than going through the local phone company. You can cut back your cable package if you need extra room in your budget as well.
Some obvious variable categories are things like food, gas and entertainment money. These can be trimmed as necessary so that you are living within your means. You may want to scrimp in one variable area, so that you can spend more in another one. Think of it as a little bit of give and take. If you want extra money you can find it through out your budget, by simply looking at how many of your categories really are variable.
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