The budget includes both expenses: fixed and variable expenses. Fixed expense cost the same amount each month and cannot easily be changed . Exampels for fixed expenses: rent payments, car payments, real estate taxes ...
Variable expenses on the other hand vary. They are daily spending decisions. Examples: buying clothes, restaurant,..
If you want to save money, variable costs are usually the first expenses that you can try to cut .
Answer:
Fixed expenses are expenses that stay the same for a person or a business. An example of a fixed expense is rent/mortgage. This expense doesn't change if you are only using the building for 2 weeks or the entire month, it's a set rate. A variable expense is an expense that changes like an electric bill, it varies based on the month and usage. When you budget, you can easily budget for your fixed expenses but you need to allow some room in your budget for expenses that change.
