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FIXED EXPENSES vs. DISCRETIONARY EXPENSES When planning a budget you need to evaluate your fixed expenses and your discretionary expenses. Educate yourself some more about budgets. Fixed expenses are operating costs that do not change for month-to-month. You have no control of your fixed expenses. Some fixed expenses include:
Discretionary expenses require you to prioritize your needs. You will need to chose how much, when, what kind etc.. Get more info about how fixed expenses work. Some discretionary expenses include:
Families with kids can often find it hard to make ends meet. Bottom line is that the cost of children is very demanding, no matter how you slice it. However, there ways to save money if you have kids. One of the biggest problems with managing your discretionary expenses is overspending on goods that you think are needed, but in fact can be considered a luxury. Not knowing how to manage your finances can be financial suicide. A good idea would be to locate a financial counselor. They will help educate about being fiscally responsible, help you identify the early signs of debt trouble and teach you about good debt vs. bad debt. Setting a budget is not easy. It may take several times before you set a budget that allows you to spend within your limits.
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