Which of the following qualifies as a fixed expense?

A fixed expense is an obligation that requires the same payment amount each month, making budgeting easier. Rent or mortgage payments are a prime example of fixed expenses because they are typically contractual obligations with set amounts that remain constant over time, barring any adjustments in property taxes or insurance premiums. This consistency allows individuals to plan their finances more effectively since they can reliably count on this expense each month.

In contrast, utilities can fluctuate depending on usage, making them variable expenses. Similarly, groceries and entertainment costs can vary significantly from month to month, depending on personal choices and consumption patterns, thus categorizing them as variable expenses as well. These other expenses lack the reliability and predictability associated with fixed costs like rent or mortgage payments.