what are fixed expenses

Fixed expenses are business or personal expenses that remain the same regardless of the level of goods or services produced or consumed. They tend to be recurring and can be planned for in advance. Fixed expenses can occur at any interval, but they are typically monthly or yearly payments. Examples of fixed expenses include rent or mortgage payments, car payments, insurance premiums, real estate taxes, and salaries. In contrast, variable expenses are those that change in cost and occurrence, such as dining out, medical expenses, and groceries. Knowing the difference between fixed and variable expenses is important for budgeting and financial planning. Fixed expenses are easier to plan for since they are typically due at set times, while variable expenses are less consistent and can be harder to plan for.