MoneyTeumFive costs to reserve before spending
Not all the money you see in your bank account is for living expenses. The payment date hasn't arrived yet, but you must first secure the money to go out so you don't overestimate the remaining amount.
1. Housing expenses and loan repayment
Rent, maintenance fees, housing-loan interest, and loan repayments are hard to postpone. Because they are often large, leaving them out makes your remaining total and living-cost spending less accurate. Record each payment date and amount.
2. Insurance premium
It is an expense that is paid regularly, such as actual cost insurance, automobile insurance, and protection insurance. You can either register annual premiums as a large fixed cost in the month you pay them, or divide them into 12 months and accumulate them separately each month.
3. Communication costs and utility bills
Cell phone, internet, electricity, gas, and water bills. If the amount changes every month, it is safe to set it a little higher than the average of the last three months and adjust it when you check the actual bill amount.
4. Subscriptions and membership fees
These are small recurring items such as video/music subscriptions, cloud services, app payments, exercise facilities, and regular deliveries. Look at your subscription list once a month and cancel any services you don't use.
5. Taxes and irregular regular expenses
Like car tax, property tax, annual fee, holiday fee, and vehicle inspection, these are expenses that do not occur every month but are timed. Divide the estimated amount by the number of months remaining and reserve for each month to avoid collapsing living expenses in the month of payment.
Even if your bank account balance is 1.5 million won, you must calculate living expenses starting from 800,000 won. MoneyTeum first excludes fixed expenses from living expenses before completing payment.
Just watch out for duplicate records
If you have already recorded food and shopping expenses on your credit card as daily expenses, do not re-add the entire card amount on the card payment date as a fixed expense. The same consumption is lost twice. It is more accurate to manage only unrecorded installments or regular payments among the card value as separate fixed costs.
Check after the payment date
- Verify that the actual amount of automatically reflected items is correct
- Fixed costs with changed amounts can be modified with the pencil button
- Canceled subscriptions are deleted from the list
- Check the cause of unpaid items without completing them.