If you’re looking to live on less, or put more towards your debt repayment, the first step is to start reducing and cutting expenses. This past June we moved to a new apartment. Since we didn’t have a whole lot of time to prepare for our move, we had to cut a lot of our expenses during that first month. We have had to completely revamp our budget for unexpected expenses, and we’ve found ourselves evaluating every line of the budget many times.
Here are some of the expenses we will never cut, even when we need to tighten our budget.
While coverage requirements vary by state, most states require you to have at least liability insurance coverage for your vehicle. North Carolina requires that all drivers have liability insurance. The law states that the coverage limit be at least $30,000 for bodily injury liability, per person per accident. However, we have more than the required car insurance policy for a number of reasons. One of which being that our cars are actually worth something. It would cost us a pretty penny to be able to replace these cars or make big repairs should we get in an accident.
If you can afford health insurance and choose not to buy it, you must pay a fee called the individual shared responsibility payment. This fee can be anywhere from 2.5% of your household income, to $2,085, whichever is greater. Health insurance is expensive, yes, but the fees usually cost more than it would have been to pay a premium in the first place.
Cell Phone Bill
We don’t have a landline in our home, so the only way we can be reached is by cell phone. If we were to cut this expense, we would be unreachable. Not only that, but the fiance uses his as the primary phone at work.
Nobody wants to think about losing a spouse, or have to decide what happens in the event of your passing, but it is very real, and happens all the time. Knowing there will be money available to help take care of outstanding debt, or to help with burial costs if something should happen to one of us brings us peace of mind. Hopefully, we won’t need to worry about using this for a long time, but we are prepared for the worst.
Internet is not a necessity, I know. However, this one is a non-negotiable for us. Without internet I would not be able to run my blog, or many of our side hustles. The money I make from these alone more than covers the cost of our internet bill.