what is a fixed expense? A fixed expense is a regular, recurring cost that does not change in amount or frequency over time. These expenses are usually contractual or long-term obligations, such as rent, mortgage payments, car loans, or insurance premiums. Unlike variable expenses that fluctuate with consumption or business activity, fixed expenses remain stable each month, making them easier to predict and manage. Recognizing your fixed expenses is key to creating a realistic budget, whether for personal or business finances, and ensures you can cover essentials regardless of fluctuating income.
