ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -There are three types of household expenses: fixed, periodic, and variable. Fixed expenses, like rent, stay the same month-to-month. Variable expenses, like food and groceries, can vary month-to-month, and generally aren’t due on a set date.

Detailed explanation-2: -Fixed expenses, savings expenses, and variable costs are the three categories that make up your budget, and are vitally important when learning to manage your money properly. When you’ve committed to living on a budget, you must know how to put your plan into action.

Detailed explanation-3: -Examples of Fixed Expenses Mortgage or rent payments. Loan payments, such as auto loans or student loans. Insurance premiums, such as for car insurance and homeowners insurance.

Detailed explanation-4: -Categories of Expenses in a Flexible Budget Rent, lease payments, insurance, interest payments, website fees, certain salaries.

Detailed explanation-5: -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).