what are fixed expenses
Fixed expenses are regular, predictable expenses that do not change much from month to month. These expenses typically stay constant or have a small variation each period and are considered essential for maintaining one's lifestyle or running a business. Examples of fixed expenses include:
1. Rent or mortgage payments: The fixed amount of money paid for housing each month.
2. Loan and debt payments: Regular payments for loans, such as car loans, student loans, or mortgages.
3. Insurance premiums: Monthly payments for various forms of insurance, such as health insurance, car insurance, or homeowner's insurance.
4. Utility bills: Expenses for essential services like water, electricity, gas, internet, and phone service, which often have a consistent monthly charge.
5. Subscription services: Regular payments for services like streaming platforms (Netflix, Spotify), gym memberships, or magazine subscriptions.
6. Property taxes: Regular payments based on the assessed value of property.
7. Association fees: Membership fees paid to organizations or associations, such as homeowners' associations or professional memberships.
8. Childcare or tuition fees: Fixed payments for childcare services or educational expenses.
9. Transportation costs: Regular expenses related to owning a vehicle, including car loan payments, insurance, or parking fees.
10. Internet and TV subscriptions: Monthly charges for internet access and cable or satellite television.
These expenses are often necessary for daily living or maintaining a business and are typically separate from variable expenses that change more frequently.