Fixed and Variable Expenses

Front

What is a Fixed Expense?

Back

A fixed expense is a cost that does not change from month to month, such as rent or car payments.

Front

What is a Variable Expense?

Back

A variable expense is a cost that can change from month to month, such as groceries or entertainment.

Front

Give an example of a Fixed Expense.

Back

An example of a fixed expense is paying rent.

Front

Give an example of a Variable Expense.

Back

An example of a variable expense is buying clothes.

Front

What are some common Fixed Expenses?

Back

Common fixed expenses include mortgage payments, car payments, and insurance premiums.

Front

What are some common Variable Expenses?

Back

Common variable expenses include dining out, shopping, and utility bills.

Front

How do Fixed Expenses affect budgeting?

Back

Fixed expenses are predictable and help in creating a stable budget.

Front

How do Variable Expenses affect budgeting?

Back

Variable expenses can fluctuate, making budgeting more challenging.

Front

Can Fixed Expenses change?

Back

Yes, fixed expenses can change if you move or refinance, but they remain constant for the duration of the contract.

Front

Can Variable Expenses be controlled?

Back

Yes, variable expenses can be controlled by making choices about spending.