Today was a big day, we got confirmation that the stimulus bill will likely pass tomorrow and the week’s unemployment numbers were delivered. Despite the 3+ million unemployment filings, the market remained up. In Pete’s estimation this is because the market already accounted for the high numbers and was prepared for it. Regardless, let’s get into Day 11!
Today Pete dives into your fixed expenses and how you can cut expenses where you can. There are a couple of categories to consider: housing, transportation, loans/debt, and insurance.
- home payment
- regular maintenance
- digital home
These categories cover all your home basics like gas, water, mortgage, landscapers & housecleaners, Netflix, Spotify, Disney+, etc. Okay, so not all of these are “basics” but they are what Pete has often referred to in the past as “new necessities”. Of course you have Netflix, everyone has Netflix! But we are in unique times and maybe you don’t need every streaming service ever. Cut where you can and move on.
- vehicle payment
- other (car wash subscription, etc.)
Loans & Debt
- credit cards
- student loans
- medical debt
Look, there’s not a whole lot you can do to reduce debt but with the new stimulus bill student loan payments are deferred until October with no interest. Take advantage of this if your savings is lacking or you’re strapped for cash.
Fixed expenses are typically just that, fixed. But in this time of crisis we are looking in every nook and cranny for places to save. Go through your fixed expenses with a fine-tooth comb. You really have no other choice.
- libations, legal drugs
- home decor
- dining out
Vices come in all shapes and sizes but one thing they all tend to have in common is that they cost money. Vices are a luxury, no other way around it. Watch yourself as your stress levels rise, this tends to trigger vices.
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