Which of the following is an example of a fixed expense?

A fixed expense refers to a cost that remains relatively constant over time, regardless of changes in usage or consumption. Rent payments exemplify fixed expenses because they are typically set at a specific amount that doesn’t fluctuate monthly. This consistency allows individuals and families to plan their budgets with a clear understanding of this recurring obligation.

In contrast, groceries and dining out are variable expenses that can change significantly month to month depending on choices made, the amount spent, or even shifting shopping habits. Utilities, while somewhat predictable, can still vary based on usage, such as heating during colder months or excess water usage, meaning they do not maintain the same consistency as rent. Hence, among the options provided, rent payments stand out as the clear example of a fixed expense due to their stability and predictability over time.