Fixed Expenses

What are fixed expenses?

Fixed Expenses Definition: A fixed expense is generally a recurring cost or expense that’s consistently charged and is usually included in a budget for an individual or a company.

These expenses are predictable in most cases, as they are usually paid by automatic withdrawal or credit card, monthly or in regular intervals. Fixed expenses remain the same, so they are easy to factor into your budget since the exact amount is paid every month or period.

Examples of fixed expenses include mortgage payments, rent, insurance, maintenance fees for a condo, and lease or loan payments.

Some fixed expenses vary slightly based on usage, though they are paid in the same regular intervals, such as utilities, property taxes, and internet fees.

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