Definition
A regular, unchanging cost like rent or a monthly subscription. Knowing these helps you budget more accurately.
What to consider
- Know your regular, unchanging costs to build a stable budget.
- Automate payments to avoid late fees.
- Review them as a base for planning your variable spending.
Real world scenarios
- Bria includes her car loan, rent, and phone bill in the fixed expense category of her monthly budget. These amounts rarely change.
- By identifying fixed expenses first, Darius knows how much remains for flexible costs like dining out or entertainment.
- Nancy locks in a year-long service contract for internet, adding that predictable amount to her fixed expense list.
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