Which of the following best describes fixed expenses?

Fixed expenses are best described as expenses that remain constant each month. This definition highlights the predictable nature of fixed expenses, such as rent or mortgage payments, car loans, and insurance premiums. These costs do not fluctuate based on usage or other conditions; instead, they are generally the same amount due every month, making them easier for individuals to budget for.

Understanding fixed expenses is crucial for effective financial planning. Knowing that certain expenses will not change allows individuals to allocate their finances more efficiently, ensuring that they have sufficient funds to cover these necessary payments without needing to worry about sudden increases in cost. This predictability is what distinguishes fixed expenses from those that vary with consumption or economic conditions.