Review fixed costs #
Reviewing fixed costs is an essential step in optimizing one’s finances. Fixed costs are expenses that remain relatively constant each month and do not vary based on usage or consumption. Identifying and managing these fixed costs can lead to significant savings over time. Here are a few usual fixed costs to review:
Rent or Mortgage Payment #
The cost of your monthly housing expenses, whether it’s rent or mortgage, is a significant fixed cost that you should carefully review.
Insurance Premiums #
This includes various types of insurance, such as health insurance, auto insurance, home insurance, and life insurance. Shop around for competitive rates to ensure you’re getting the best value for your coverage.
Many times these can be negotiated with your existing insurance company.
If your insurance is payed annualy, schedule a day on your calendar before the payment so you can negotiate the rate with them.
Utilities #
When it’s possible consider looking into other providers for electricity, gas and water.
However, consider that sometimes these changes might come with some downtime.
Internet #
Look at your internet plan.
Ask yourself:
- Do I need this plan, or can I have a cheaper one?
- Are there other plans in the market that are more competitive?
- Can I negotiate the plan with my current provider?
Mobile Phone Plan #
Cell phone bills are often fixed costs that can be reviewed to determine if there are more cost-effective plans available. Sometimes these can be bundled with Internet and some subscription services
Subscription Services #
Evaluate recurring subscription costs for:
- streaming services,
- gym memberships,
- software subscriptions,
- magazine subscriptions,
- loyalty programs,
- professioanl organizations,
- associations,
- and other memberships.
Cancel those that you rarely use or no longer find value in, you can also try to negotiate some of these, or change provider.