If you are constantly looking for ways to save money, one way to do this is to identify what you can do to reduce your fixed expenses.
It is a fact that there is a challenge when it comes to fixed expenses. Because many of them are directly related to the basic needs of the family budget. However, there are possible ways to cut these expenses if you know where to look.
To make the process easier, create a category for all your expenses. This way, you’ll be able to quickly identify the fixed expenses that are essential and the ones you can review to save more money.

Examples of fixed expenses

Fixed expenses recur every month in your budget or vary very little, making it easier to forecast in financial planning. Some of the most common fixed expenses include:

• Rent
• TV, internet, and cell phone plan
• Loan installments
• Real estate and car financing installments
• Insurance (medical, property, vehicle, cell phone, etc.)
• Subscription services (Netflix, Spotify, Amazon, etc.)
• Cleaning and laundry service
• Fixed taxes
• Subscription clubs (books, wines, clothes, etc.)
• Self-employed professionals (private teacher, psychologist, accountant, etc.)
• Card and bank account fees

These expenses are easily predictable and are already included in your monthly financial plan, with little or no variation. So the question is: what can you do to reduce or eliminate these expenses? Here are some tips.

1. Review your TV, internet, and mobile plans

A good tip to reduce your fixed expenses is to change your current internet, TV, and cell phone plan for a cheaper one.
Nowadays, it is increasingly common for people to spend a good part of the day away from home. So, there is no need to have an expensive internet plan in your home if you barely use it.
The same is true if you have Wi-Fi available in your work environment or don’t make frequent cell phone calls, giving you the freedom to opt for a cheaper cell phone plan.
So, take the time to call companies and try to renegotiate your packages. If you can’t get a better price, don’t hesitate to look for other operators that offer the same service for a more attractive price.

2. Review subscription services to reduce your fixed expenses

Subscription services with recurring payments give you the comfort of not having to remember to pay by a specific date each month. However, it may happen that you are paying for something that you no longer use.
So, review everything you spend today, from streaming services to subscription clubs. And be honest with yourself to eliminate what you no longer need.

3. Request a mortgage interest rate reduction to reduce your fixed expenses

Did you know that it is possible to reduce your mortgage interest rate? If you feel that the interest rates on your mortgage are outrageous and you have seen better offers in the market, you can renegotiate with your bank. (See also: How to get the best possible mortgage rate).

4. Rethink the rent

It is worth rethinking this expense for those who live on rent and still need to pay the condominium fee.

Some people make the big mistake of living above their financial reality by paying the rent of a property that only weighs in their pocket. If this is your case, try to negotiate the value with the realtor or the owner.

That way, you will be able to save a little more money every month with just this fixed expense.

Also, if you notice that you can no longer maintain this expense, look for properties whose rent is cheaper and will not affect your income as much.

5. Stop paying card and bank account fees

If bank and card fees are still among your fixed expenses, it’s time to reduce it. To help you do that, check out this post on how to avoid unnecessary bank fees.

In addition, some credit cards like PC Mastercard and SimplyCash Card from American Express have no annual fees. Instead of signing up for premium cards without taking advantage of their premium perks, you can opt for these cards. (See also: Common Credit Card Fees And How To Avoid Them)

In conclusion

One of the best ways to improve your finances is to reduce your fixed expenses. And remember: even though fixed expenses are usually essential, a simple habit change like reviewing your subscription services can help you save money.

So, replace excuses with solutions to reduce your fixed expenses!