Fixed expenses refer to recurring expenses that remain the same amount each month, such as rent or mortgage payments, car payments, or insurance premiums.
These expenses do not typically vary based on usage or other factors and are considered essential to maintaining an individual’s or organization’s day-to-day operations.
Fixed expenses are often budgeted for in advance and can be easier to plan for than variable expenses, which may fluctuate from month to month.
Understanding fixed expenses is an important part of budgeting and financial planning, as they can have a significant impact on an individual’s or organization’s overall financial health.
By identifying and managing fixed expenses, individuals or organizations can ensure that they have the resources needed to cover these essential costs and achieve their financial goals.