ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -An electric bill is commonly considered a fixed living expense. Security deposit covers the rent for the first month when moving an apartment. A roommate may reduce the financial burden of renting an apartment. Saving money for a down payment to buy a house is usually is considered a short-term goal.

Detailed explanation-2: -A few examples of flexible expenses include what you pay for monthly groceries, clothing, and transportation, as the total cost of all of these things will most likely vary.

Detailed explanation-3: -Categories of Expenses in a Flexible Budget Rent, lease payments, insurance, interest payments, website fees, certain salaries.

Detailed explanation-4: -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).

Detailed explanation-5: -What Is 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. Flexible expenses should be included in a budget to manage an individual’s overall finances.