Article: Fixed and Variable Expenses

Budget - Fixed and Variable Expenses 

A good way to make sure you have enough money to spend and save is to use a budget. A budget helps you make sure your income matches your expenses. A budget also helps you with saving money. 

Each month, you may receive income from the job you have, and interest from the money you save. Also each month you will have expenses. There are two main types of expenses, fixed expenses and variable expenses. Fixed expenses tend to be about the same each month, for example rent. Variable expenses tend to fluctuate each month, such as clothing.

One good way to create a budget is to track your income and expenses for one month, by keeping track of each type of expense and if that expense is a fixed expense or variable expense. For the month, Mackenzie earned $556 and tracked expenses for the month to help create a monthly budget. Fill out the table below using the expenses Mackenzie tracked. Then total fixed and variable expenses. Also calculate total expenses. Was income greater than or less than expenses for the month? 

Expenses: Going to the movies $21, Phone bill $41, Rent for an apartment $156, Tax on earnings $171, Music CDs $26, Eating out at resturants $64,New shirts $28, Car repairs $13 

Answers

Income - Expenses = $556 - $520 = $36