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
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CHAPTER · EXPENSE TRACKING & AWARENESS · FOUNDATIONSFixed, Variable and Irregular ExpensesRELATED TERMS
SOURCES
- Consumer Expenditure Surveys. U.S. Bureau of Labor Statistics.