Budgeting Step 2: Setting up your fixed costs

Last Updated: Jan 13, 2015 01:49PM EST
The next step in establishing a budget is setting up your fixed costs. Fixed costs are expenses that don't vary from month to month. They include things like your rent or mortgage payments, utilities, cell phone bills, or insurance payments. It also includes everything you're committed to paying such as gym memberships and subscriptions. Click on each of the existing folders and enter a number in the "Set a budget for this folder" field.



You can add additional folders for each of your fixed costs by clicking the "Add" button that appears when you hover over the "Fixed Costs" section of your "Inbox." For example, you can add separate folders for "Gym", "Netflix", "Magazines", and more. For each folder, enter a number in the "Set a budget for this folder" field.

  



This level of itemization will give you a clearer sense of what you're spending money on to help inform your decisions of what to potentially cut back on. You can always consolidate the folders later on after you're more confident about which expenses you want to commit to.

Once you've done this, you can go to the "Budget" tab of the Money Center to see how much money you have left over each month after you've added up all your fixed costs.

The next step is setting up your goals.

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