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Lower Your Fixed Expenses

One way to speed up your path to wealth and give yourself the ability to have more cash flow to invest for passive income returns, and to lower the amount of passive income required to become financially free is to lower your fixed expenses. Below are some of the top ways to do so to help you along the path to financial independence and freedom.

Top Ways to Lower Your Fixed Expenses

  • Refinance Your Mortgage (as a general rule monthly housing costs should not exceed 30% of your monthly income)
  • Move to More Affordable Housing (if not a homeowner)
  • Ask Your Internet Provider for a Discount
  • Compare Insurance Rates (shop around)
  • Check Your Cell Phone Plan (shop around to see if you can find a more affordable provider with a similar plan or if you can slightly alter your habits to fit a cheaper plan, do so)
  • Consider Getting Rid of Cable (There are many alternative plans out there these days where you can order subscriptions to your favorite channels and watch television shows/movies on your Roku or similar)
  • Refinance Your Student Loans (Student loan debt can easily consume a large portion of one’s debt load and as interest rates vary over time, you should check to see whether you can refinance to save yourself some money on a monthly basis)


Consider the above as ways to save yourself potentially hundreds of dollars each month, which equates to thousands each year. These thousands of dollars can be used to prioritize debt payments and payoff credit card/student loan/auto loans with higher interest rates (which in turn will free up even more monthly income). Paying off high interest rate debts is a sure way to make 12-20% rate returns (depending upon what interest rate your credit card/loan is set at). Once these debts are paid off, the freed up monthly cash flow which used to pay debts can go toward funding investments to pursue your goal of increasing your passive monthly income and becoming financially free.