Comments on: What is a Passive Expense?

By: t-luck

t-luck — Fri, 28 Nov 2008 00:55:25 +0000

Agreed with you Francois.. Passive expenses (only heard of passive income before this) would be a killer if left unchecked. Especially if you had put the payments on standing instructions to your credit cards…

By: Sharon

Sharon — Mon, 29 Sep 2008 15:39:39 +0000

Ah, I think I have many passive expenses, but don’t know it until after I’ve spent the money. I’ll have to go through my expenses again to see if I still have any sneaky passive ones in there!

By: Carnival of Personal Finance #172 - Meltdown Edition

Carnival of Personal Finance #172 - Meltdown Edition — Mon, 29 Sep 2008 09:47:12 +0000

[...] gym membership you have that you never use? Yeah, that’s a passive expense. From Liberta – [...]

By: Francois Viljoen

Francois Viljoen — Sat, 27 Sep 2008 11:46:12 +0000

@Johan

Yup, I had a similar experience. I moved bank accounts about 4 years ago.

It was a lot of effort back then, but if I think about it now, it has saved me about R8000 worth of bank charges since then, and earned me A LOT of additional interest I would not have earned otherwise.

The few hours of effort was definitely worth it.

@Nate

Thanks Nate! Eliminating my passive expenses was the first and best thing I did when I just started out. Like with the example above, it really was worth it.

By: Nate

Nate — Fri, 26 Sep 2008 12:18:37 +0000

good tip, Francois. I never thought about ‘Passive Expenses” in that much detail

By: Johan

Johan — Fri, 26 Sep 2008 08:42:24 +0000

Ai… I agree. I did the exercise to just move my bank account from one bank to another and moving my short term insurance to another insurer. Its amazing how much you can save!!!