GLOSSARY · BUDGETING, SPENDING & SAVING

Fixed expense

A cost that stays the same from month to month unless you take a deliberate step to change it, such as rent, a loan payment or an insurance premium. Fixed expenses, together with essential variable costs, set the least a household needs each month and the size of its emergency fund. Changing one usually takes a single decision, which then repeats every month.

Also called: fixed cost, fixed bill, committed expense
COMPUTE IT WITH YOUR NUMBERS
Emergency fund calculator →How many months of expenses do I have saved, and how many do I need?Paycheck budget →How should I split each paycheck between bills, savings and spending?
LEARN IT PROPERLY
CHAPTER · EXPENSE TRACKING & AWARENESS · FOUNDATIONSFixed, Variable and Irregular Expenses
RELATED TERMS
Variable expenseSinking fundEmergency fund
SOURCES
All terms →The Library →