Compulsory recurring financial obligations remain at a constant amount throughout different periods. These recurring costs have predictable payments points which occur on a monthly or yearly basis. The list of fixed expenses includes routine payments for mortgage, utilities, insurance and subscription fees. Planning budgets efficiently becomes possible with fixed expenses since they offer stable financial patterns. The amount of fixed expenses does not change because they exist independently from usage or sales levels. By controlling fixed expenses people attain financial safety and avoid both spending beyond their means and money instability.
Also read: what is a fixed expense
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