Fixed Expense
A fixed expense is a cost that stays about the same from one month to the next, so you can plan for it. Rent does not change because you worked fewer hours. A car payment is the same amount whether you drive a little or a lot. A streaming subscription charges the same fee each month until you cancel it. The bill still has to be paid in a month when your income drops. For a business, office or factory rent works the same way: the cost stays in place whether the business makes more or makes less.
Related Lessons:
