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Fixed expenses are repeated costs that are stable and predictable. This can be contrasted with variable expenses that go up and down over time. The following are examples of both business and personal fixed expenses.BusinessIn the context of business, a fixed expense is anything that doesn't change with production volumes or strategy. This includes most types of employee salary with the exception of labor that is scaled up and down with business volumes.Amortization | Benefits | Depreciation | Fixed Price Contracts (e.g. Internet) | Loan Payments | Pension | Rent | Salary |
Advertising is sometimes incorrectly listed as a fixed expense. In fact, advertising is a strategy that changes with time and may generate demand such that it is variable.
PersonalPersonal fixed expenses are recurring costs that are a predictable and stable amount. These include both non-discretionary expenses such as rent and fixed price discretionary expenses such as a streaming media service.Insurance | Internet | Loan Payment | Mobile Phone (fixed price contract) | Pension Contributions | Property Taxes | Rent | Social Security | Streaming Media | Tuition | Vehicle Lease |
Deductions from your salary are expenses even if you don't pay them directly.
Expenses
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