As you earn your monthly pay, what eats deeply into your finances is EXPENSES. You need to know the depth of the impact of your expenses on your finance and what to do about it and how to manage them properly. You need to pay attention to it and be detailed about it and know the ones to cut down or manage. You need to know the types of expenses existing and how you manage them. If your expenses is not well- managed, you end up struggle financially and its one of the reasons people are always broke because they have too many things to pay. These are the three types of expenses:
These are the recurring expenses that surface and the amount attached to them is fixed which makes it remain standard month to month. For the time frame, the amount you pay for them will not changed. It's the same amount you pay monthly or year and has not varied, if only you change location, their prices may not be the same, putting in place location as a key factor, rent, utilities, and others etc
These are expenses that you have more control over, but they still occur monthly and very important. You can control them but you can't do without them. Their prices also varies in the market depending on how you manage your money properly. Food, gas and many more.etc.
These can be fixed amounts or variable amounts (gifts), but they are not the types of expenses that occur monthly. They can be quarterly, bi-annual or even random type of expenses. You buy gifts for people like birthdays, holidays etc.
Knowing these types of expenses gives you the chance to know where your money is going and what eats deep into your finance and how you can manage them properly to have more money to save,invest and budget your finance properly.
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Content created and supplied by: RAWLINGS10 (via Opera News )