When it comes to budgeting, understanding the difference between fixed and variable expenses is key to managing your money effectively. Fixed expenses are costs that remain the same each month, while variable expenses can fluctuate. Knowing how to categorize these can make budgeting easier and more predictable.

Fixed expenses typically include things like rent, mortgage payments, and car loans. These costs don't change from month to month, making them easier to plan for. On the other hand, variable expenses like groceries, utility bills, and entertainment can vary, meaning you need to allocate some flexibility in your budget to accommodate these changes.

By identifying which of your expenses are fixed, you can better plan for the long term, ensuring that essential bills are always covered. So, can you identify which of the following is a fixed expense? Let’s see how well you know your budget basics!