Module four types of fixed personnel expenses. fixed expenses are expenses that do not change in cost for their duration period. An example would be that your newspaper subscription is $25 a month, you know that every month you are going to be paying $25 for your newspaper subscription, since it's the same amount every month that makes it a fixed expense. fixed expenses could be utility bills, housing bills, transportation bills, etc. utility bills. One type of fixed expense could be some of your household utility bills.

A utility bill reflects public services that are associated with a legal residence. If that utility bill is the same every period month or a year, then it can be considered as a fixed expense. Here are some examples of a fixed utility bill. Telephone, cable internet, sewer electric. Some electric companies offer average rates for customers water trash, gas, housing bills. Most of the time your housing bills can also be included in your fixed expenses.

And housing bill is a bill that is related to the actual dwelling, not a utility bill. An example of a housing bill would be your rent. If you rent an apartment for $1,000 each month, it's a fixed housing expense. You know that every month you are going to have to pay your $1,000 rent. These bills don't have to only be monthly bills. They could be yearly bills such as house taxes.

Here are some examples of housing bills, rent, mortgage, neighborhood association dues, house taxes, house or renters insurance, transportation. Some of your fixed expenses can be transportation expenses. your car's gas bill is not a fixed expense because that can fluctuate depending on where you travel to and your car. A fixed expense could be your car payment. Most people pay the same amount every month. For their car payment.

Since it doesn't change, it would be a fixed expense. Your automobile insurance is another example of a fixed expense. Here are just a few more examples of fixed transportation expenses. bus pass, quarterly oil change, car payment, monthly parking in a garage facility, subway pass car insurance, debt payments. Another example of a fixed expense would be your debt payments. debt payments could consist of loan payments or payments for past due debts.

If you have past due medical expenses that you make payments on this could be included as a debt payment. Since these payments are the same each month they are considered fixed. If you are lucky or financially savvy enough to not have any debt, then this section may not be applicable when determining your budget. Case Study. Jessica is very good with her money because she is very faithful to her budget. Her sister Marsha is not very good with money and is tired of struggling To pay her bills, she asks Jessica for help with her finances.

Jessica tells Marsha that she needs a budget to help her with her financial situation. She asks Marsha to come over with all of her bills and receipts so that they can start development of her budget. Jessica separates the expenses into two categories fixed and fluctuating expenses. Jessica tells Marsha that she is separating the bills into these two categories to see what bills they know for sure are going to stay the same and what may vary in cost.