Planning your monthly income is extremely important to avoid problems when covering regular expenses. To do this, you need to identify which payments are usually fixed and which vary depending on your behavior or the time of year.
What are fixed costs?
There are certain tax and utility payments that are fixed, and you already know in advance how much you owe each month. This applies, for example, to a loan payment you took out, an insurance policy, phone, internet, or streaming service bills, college or university tuition, a prepaid medical contribution, or your gym membership, among others.
These payments are scheduled , have a set due date, and are therefore predictable. They are “commitments” that we cannot avoid or postpone.
What are variable costs?
Other expenses you make each month are variable, because they depend on your decision to make them : you can do without them or their execution depends on the time of year you are in.
Some examples of these expenses include food, clothing, eating out or entertainment, gas costs, etc. For example, the monthly expense calculation will change if we decide to stay in and eat every day, or decide to order delivery or go out to dinner two or more times a week. We will buy warm clothes when the winter season arrives or give gifts to family members, depending on the month of their birthday.
How to plan your expenses each month?
Keeping in mind the difference between fixed and variable expenses, one strategy we recommend is to write down the payment dates for all your fixed expenses and calculate their total amount. This way, you can consider the amount you should set aside (and not spend) to pay them.
You may also find it useful to use a paid virtual wallet account, to earn daily returns on your income, while having them available 24/7. This means you can simultaneously invest and withdraw pesos whenever you want to pay your bills.
And you also have benefits available when paying your internet, phone, and cable bills, among other services, through your virtual wallet. This also generates additional savings.
In short, while you wait for the due dates to pay your fixed expenses, or while you also need pesos to cover your variable expenses, you earn profits with your money, with interest rates that generate returns every day.
This way, you’ll save money and plan your expenses at the same time. Start doing it today!
