Budgeting For Fees

Everybody Hates Fees But are They Just Misunderstood?

Budgeting for feesThe word “Fee” is older than the language we recognize as English today. It can usually be used to depict any form of payment; however, modern usage tends to give it somewhat of a negative connotation describing an add-on.

Whether something is overused or an outside service is required, the extra charge can be unexpected and seen as an infrequent occurrence. As a result, fees are justified as something that will not continue in the future and are often missed in the average individual’s financial plan. This bias creates a self perpetuating problem, as fees are often a result of poor planning.

A more thorough understanding of how fees work will help in creating a budget that works in the long term and help in calculating the true price of a product or service. The following are the 5 main characteristics of fees and how to approach them.

Services Rendered

This fee is usually an add-on to help understand a product or is a repair/maintenance cost. It  should be seen as a means to leverage the use of what you have now in order to get the most out of a product. View full post…

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