The final option involves setting up automated bill payments through your bank or credit union. Similar to direct debit, providing one of these payment methods means the responsibility for drawing the monthly payment on time falls on the merchant and creditor, not you. You will need to update the card information whenever the number or expiration date changes, but this method also simplifies your monthly payments. ![]() Provide the merchant or creditor with a payment card for your monthly transactions, whether it be a debit, credit, or prepaid card. If they process the payment late, you are not responsible for any late fees. If your payment due date falls on a weekend or holiday, they usually draw the payment the following workday. By providing them with your bank or credit union’s routing number and your account number, you make the merchant or creditor responsible for “grabbing” your payment on its due date. Set up a reoccurring direct debit transaction with the merchant or creditor. Pay your rent, mortgage, utility bills, car payments, phone bills, and other fixed bills automatically by using one of the following options: The regularity of fixed payments leads you to expect them and plan for them.Įven though fixed expenses typically cause less stress than variable and periodic expenses, you may still benefit from one simple trick to reducing your worry even further about taking care of them.Īutomating your fixed expenses takes the hassle out of monthly bill paying. What are Fixed Expenses?Ī fixed expense reoccurs every month in the same exact amount.įixed expenses typically include your largest financial obligations and they cause the fewest problems. The more periodic your expenses are, the more financial crises you will likely experience. ![]() The more fixed your expenses are, the better. If you are wondering why you should care, it really does matter which type of expenses you have in your budget. Fixed Expenses Can Simplify Your FinancesĪll personal and household expenses belong to one of three expenditure categories:
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