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What are fixed expenses?

For personal budgeting purposes, fixed expenses are the costs that you can forecast with confidence because they don’t change from month to month or period to period. They tend to take up the largest percentage of your budget because they are things like rent or mortgage payments, car payments and insurance premiums.

What are fixed costs in personal finance?

In personal finance, fixed costs are recurring expenses that stay relatively constant month to month. Throughout the year, you may encounter instances where your fixed costs change slightly, whether it be because your landlord raises your rent, your car insurance premium increases, or something else.

What is the difference between fixed and variable expenses?

Fixed expenses are your predictable, regular costs, which tend to be large, like rent. Variable expenses can be estimated but not with certainty.

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