Review Non-negotiable Expenses First
At the top of your spending plan, list the expenses you absolutely must pay. For example, you need a place to live, so you have to pay your mortgage or rent each month. Utilities such as heat and electricity, basic phone service and insurance are other non-negotiable expenses. Food is in there, too. Include any personal or student loans in this category as well.
Analyze Negotiable Expenses
Nonessential expenses are items you want but don’t necessarily need. Music or TV streaming services are a few examples. Restaurant meals and pricey vacations are others. If you need more cash to pay for essentials, areas like these are good places to look. Paring down nonessential expenses can make a big difference in your cash flow.