For personal budgeting purposes, fixed expenses are the costs that you can forecast with confidence because they don’t change from month to month or period to period. They tend to take up the largest percentage of your budget because they are things like rent or mortgage payments, car payments and insurance premiums.
What are 5 examples of fixed expenses?
Common examples of fixed costs include rental lease or mortgage payments, salaries, insurance, property taxes, interest expenses, depreciation, and potentially some utilities .
What are examples of fixed expenses?
- Rent or mortgage payments.
- Car payments.
- Other loan payments.
- Insurance premiums.
- Property taxes.
- Phone and utility bills.
- Childcare costs.
- Tuition fees.
What are examples of personal expenses?
- Mortgage/rent.
- Homeowners or renters insurance.
- Property tax (if not already included in the mortgage payment).
- Auto insurance.
- Health insurance.
- Out-of-pocket medical costs.
- Life insurance.
- Electricity and natural gas.
Are clothes a fixed expense?
Variable costs are unfixed, discretionary costs that include gas, clothing, entertainment, pet supplies and dining out at restaurants. Your electric bill is a variable expense, too, unless you’ve arranged to have even billing, where the payment doesn’t change from month to month.
What are the 4 types of expenses?
If the money’s going out, it’s an expense. But here at Fiscal Fitness, we like to think of your expenses in four distinct ways: fixed, recurring, non-recurring, and whammies (the worst kind of expense, by far).
Is electricity a fixed expense?
Utilities– the cost of electricity, gas, phones, trash and sewer services, etc. ... However, utilities are generally considered fixed costs , since the company must pay a minimum amount regardless of its output.
Is groceries a fixed expense?
Fixed expenses are your weekly, monthly, or annual bills that don’t fluctuate. These include things like mortgage or rent payments, car payments, insurance premiums, utility bills, and the average amount you spend on groceries.
Is rent a fixed or variable expense?
The most common examples of fixed costs include lease and rent payments, utilities, insurance, certain salaries, and interest payments.
What are the 3 types of expenses?
There are three major types of expenses we all pay: fixed, variable, and periodic .
What are personal expenses?
1. personal expense – the cost of personal or family living ; “some personal expenses are tax deductible” disbursal, disbursement, expense – amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures)
How do you classify personal expenses?
- Home: Rent, renter’s insurance, repairs.
- Groceries/Toiletries: Food, bathroom, and home supplies.
- Personal: Clothing, gifts to other people, health-related expenses.
- Entertainment: Dining out, movies, music downloads, books.
What are common expenses?
The amount of common expenses is based on the yearly budget. Budgets usually include such items as the cost of repairs, insurance fees, reserve fund deposits, legal and accounting expenses, property management fees, snowplowing , landscaping, elevator service and maintenance, and garbage removal.
What are three examples of variable expenses?
Common examples of variable costs include costs of goods sold (COGS), raw materials and inputs to production, packaging, wages, and commissions , and certain utilities (for example, electricity or gas that increases with production capacity).
What are the fixed variables?
A “fixed variable” is one that is assumed to be measured without error . It is also assumed that the values of a fixed variable in one study are the same as the values of the fixed variable in another study.
What is considered a flexible expense?
A flexible expense is a discretionary purchase that can be altered or eliminated without a significant downside . These are non-essential expenses that stand in contrast to fixed expenses. ... Economists often use the term consumer discretionary spending to describe flexible expenses.
