1. rent
2. auto insurance
3. high-speed internet
4. health insurance
5. student loan repayment (to start in December 2007)
Basically… that’s it. No cable. No subscriptions. No car payment. I don’t have a cell phone payment because I’m still on a family plan (thanks Mom & Dad).
My fixed expenses as a percentage of income is actually very manageable, and might even be called low by some standards. I realized something… I LOVE having low fixed expenses. I love not having to write a $300 check for my car every month. I love knowing that my student loan repayment is only $160 a month. I love having a rent payment that is significantly lower than the 25% of gross rule-of-thumb.
I feel as if I’ve discovered a secret. But of course, it’s only common sense that the lower my fixed expenses, the higher discretionary income I would have to spend (or save). I don’t really feel pressured or stressed about money – at least, any pressure that I DO have is related to future concerns, not day-to-day cash flow.
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I would challenge you to save and pay in full #2 when the bill comes. You will always save money in the long run doing it this way and some companies actually decrease your premium if you do it in addition to saving you on paying them interest.
I would also suggest getting #5 paid off as soon as possible. The sooner they are out of your life the better.
Congratulations on keeping your expenses low. How did you purchase a car while in school?
You’re one of the lucky ones. I don’t have a car payment either (thanks mom and dad), and it seems really hard for me to imagine having a car payment in addition to my other expenses. Every day my car is working, I’m grateful.
Also, your company doesn’t provide you with health insurance? That could be one of the reasons your salary is a bit higher than average.
Lucky you! That is where I want to be eventually!
That’s great! There was a time when I had very low fixed expenses relative to my income, and I didn’t stress about saving much either because I had more than enough to both make ends meet and to save some on the side. But I am still totally irritated with myself for not tightening the belt a little more in the fat times, because I really could have used the extra now! How great to be both making money *and* knowing what you’re doing.
Cashgoat – I actually split my premium into 6 monthly payments – it only cost $1 extra for each payment (or around $5 more). I figured the additional $5 is worth keeping my cash flow more liquid
Saving Diva – I got Dad’s old car.
Peachy – I have insurance through work, but I still have to pay to get it. I know alot of people don’t get insurance through work, so I’m grateful.
Ditto. Low fixed expenses are awesome!
I only pay car insurance and my husband’s cellphone bill every month. That’s it
Everything else = debt/retirement/variable expenses.
well-heeled and peachy, I’m super jealous! My car payment of $225 for an old used car is a pain in the butt!