Module five types of fluctuating personnel expenses. Now that you have learned about fixed expenses, we will switch gears to fluctuating expenses. fluctuating expenses are expenses that the amounts vary. In this section we will discuss some of the fluctuating expenses that you may encounter when creating a budget. There are many different types of expenses that fluctuate and costs, but we will be exploring personal care, non fixed transportation costs, meals and entertainment costs. Personal Care personal care expenses are a broad category for your budget.
Personal Care can range between your food, toiletries, medical expenses and clothing. These expenses could be weekly expenses like groceries. Some of these expenses could be monthly expenses like buying your prescription medications. You may not need these expenses like clothing every month. Most of these expenses will have to be estimated when you're estimating the costs. It is strongly suggested for you to estimate on the higher end So that you don't cut yourself short.
Once you are able to project the expenses you have and their estimated timeframe, you can add them to your budget, non fixed transportation costs. As you continue to embark on your budget exploration, you will notice that you have some non fixed vehicle costs. gas is a great example of a non fixed vehicle cost. What you spend in gas one week may not be exactly the same as what you spend the next week. Gas prices change constantly. Another example of non fixed vehicle costs could be paid parking, toll road fees, cab fare, Car Wash, and tear entertainment.
It is unrealistic to make a budget without having an entertainment expense. Yes, this is not a life necessity, but it is important for the quality of life. Obviously, if the choice is paying a utility bill or paying for entertainment, you should choose the utility bill. This expense could be small depending on the flexibility of your budget. Here are some examples of entered Payment expenses, movie tickets, going dancing, concerts, renting a movie, putt, putt golf, bowling, eating out. Just as it is unrealistic to have a budget without an entertainment expense.
Not having a budget for eating out is just as improbable. We may all have moments where we think I am not spending money on eating out anymore. I will cook all of my meals. It's just like that New Year's resolution to work out every day it quickly falls by the wayside. Try to really evaluate how much you eat out and budget accordingly. It is better to have extra money in the budget for these type of expenditures.
That way you won't be tempted to try to squeeze it last minute out of your gas budget. Keep in mind that there are ways to stretch your buck. You always have the option to use coupons or special deals. Case Study. Holly and Bridget have been friends for years. Polly always seems so put together to Bridget and it seems like she always has the funds to do fun things Bridgette feels like she is always struggling for money and never has any left to have fun.
Lately Bridget has been declining Holly's invitations to hang out because she doesn't have the money. Polly sees that her friend is pulling away from her and finally asks Bridget what's wrong. Bridget tells Holly about her financial stress. Holly tells Brigitte that she has been in her position. She told Bridget about her budget and how she started setting aside money to have entertainment opportunities, dining out options and other personal expenses. She told Bridget that she used to just budget her utility bills and rent and was always too broke to do any activities.
They started working immediately on a livable budget for Bridget