ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Saving can also be considered a fixed expense if you’re budgeting for it regularly. For instance, you may put $100 into your emergency fund every payday.

Detailed explanation-2: -The next time you think about your bills, expenses and obligations, factor savings into your budget as an expense category and pay yourself first. Regardless of how you save or what kind of account you put your saved money into, make the choice to give yourself money to spend later.

Detailed explanation-3: -Fixed expenses generally cost the same amount each month (such as rent, mortgage payments, or car payments), while variable expenses change from month to month (dining out, medical expenses, groceries, or anything you buy from a store). TIP.

Detailed explanation-4: -What Are Fixed Expenses? Typical fixed expenses include car payments, mortgage or rent payments, insurance premiums and real estate taxes. Typically, these expenses can’t be easily changed. On the plus side, they’re easy to budget for because they generally stay the same and are paid on a regular basis.

Detailed explanation-5: -Mortgage or rent payments. Loan payments, such as auto loans or student loans. Insurance premiums, such as for car insurance and homeowners insurance. Property taxes. Internet and cable bills. Childcare expenses. 29-Aug-2022