You will want to refer to them as you develop your spending plan. Once you have listed your goals, the next step to successful money management is to calculate your expenses. Expenses can be classified as fixed, flexible, or periodic. Fixed expenses are the budget items that you pay a specific amount of money for every month for a specified period of time. Some examples of fixed expenses are rent or mortgage, car loans, and credit card payments.
Flexible expenses vary from month to month and can be controlled and managed to some extent.
They are generally more difficult to forecast than fixed expenses. Examples of flexible expenses include food, clothing, gas, telephone, and personal care. Divide the yearly total by 12 and set aside that amount each month. When the expense occurs, the money is there. Using Worksheets 2A and 2B , list your family's current expenses.