183. Beware of Adding Fixed Costs in 2024

Pruning To Prosper - Clutter, Money, Meals and Mindset for the Catholic Mom

Opening Bible verse: Proverbs 21:5

"The plans of the diligent are sure of profit, but all rash haste leads certainly to poverty."

It is recommended by Remit Sethi that our fixed costs do not exceed 60% of our take home pay. This percentage allows wiggle room in our budgets for saving for retirement, short term savings to cover unexpected expenses and vacations. Keeping fixed costs at or below 60% allows a more relaxed relationship with money. Life is more predictable and surprises don't come with nearly the stress as when there is little wiggle room in the budget. It leaves us room to enjoy our lives and better respond to God's calling.

In today's podcast episode I talk about those obvious fixed costs as well as those sneaky ones that we add without giving them too much thought. Once we add a fixed cost, it's very hard to take it away. Being diligent about adding a fixed cost will allow you to profit. Adding a fixed cost without much thought leads to poverty.

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