Constrained expenses, know them to reduce them better – Use a loan!
The constrained expenses are all these invoices that eat away at your salary as soon as it arrives in your bank account. Electricity, rent, loans … Impossible to escape them. This does not mean, however, that you have to go through them without taking care of them.
Monitoring your constrained expenses is one of the first steps to manage your budget well, save money and avoid falling into a tense situation with too high a debt ratio. Here are the expenses to watch and how to limit their impact on your finances quickly, but also more sustainably.
What are the constrained expenses and why should they be monitored?
Among your constrained expenses are expenses that you can hardly reduce, such as your rent (rent, smaller, a little further from a city center, etc.). But the problem is that these expenses coexist with a multitude of invoices directly related to your consumption. These include, for example, electricity, gas, water, etc. The charges necessary for your daily life. These are also your telephone bills, your insurance and the costs related to your vehicle or public transport. Costs necessary for the smooth running of your professional activities.
Finally, you must include in the list of your constrained expenses the loans and credits that you must repay. This last point is often seen as the most important for sound budget management, but that does not mean that the others should be forgotten. They are a package that you need to measure and minimize to truly control your finances. Lowering a monthly loan (or several loans) is not the only solution to limit the weight of your constrained expenses.
Solutions to limit your constrained expenses
The first step to take action is to find out what is actually going on in your bank account and what are your cash inflows and outflows. But this is only the start of your management. The main advantage of this monitoring is to restrict your cash outflows.
Let’s be realistic, you can’t completely remove your charges unless you live in the dark. You can however compare the amount of your invoices with the offers available elsewhere on the market, and measure your own consumption.
Housing, first weight in the French budget
Your accommodation alone accounts for more than half of your monthly costs. Depending on where you live, for the same surface, the amount of your rent can even go from simple to double. If you are a homeowner, you are not spared since you have to pay your mortgage. These costs represent the major part of your housing budget but there are still bills on which you can influence: water, electricity and gas. To do this, you can simply reduce your consumption of course, but also adjust your off-peak hours.
It is also possible to change supplier for a cheaper formula from a competitor. The energy markets have opened up for several years, and alternative operators provide very competitive prices. Maybe they can save you money.
Compare prices, a principle applicable to all your expenses
Comparing offers should not be limited to your large investments. All your expenditure items can be subject to a comparison and a real reflection. This is true for your phone and your fuel, but also for your insurance. Take this last example. An insurance company must adapt its premiums to your history. This is particularly the case in the automobile sector. But you should not be subject to its rates. If its services do not suit you, you are free to change it. You can also choose different organizations for your auto, home or even liability insurance.
“Bundled” offers are sometimes not so economical. The same goes for your bank charges, some banks charge more favorable rates or even free for new customers, while you probably pay very dearly for your banking services now, in a bank to which you have been loyal for years .
To go further and really optimize the management of your budget, don’t forget to look into your buying habits. Rather than systematically going to the store to buy new, prefer the opportunities offered on sales websites between individuals. Watch for good deals and sales, and try new consumption formulas that are developing, such as car-sharing, direct purchase from manufacturers, or even the rental of certain products rather than purchasing. These are all ways that can also help you decrease your expenses and keep your budget afloat.