Fixed expenditure refers to regular, predictable expenses that do not change in amount over time. These costs typically include items such as rent or mortgage payments, insurance premiums, and loan repayments. Because they remain constant, fixed expenditures help individuals and businesses plan their budgets more effectively. Understanding fixed expenditure is crucial for financial management. By knowing how much is allocated to these expenses each month, people can better assess their discretionary spending and savings potential. This clarity allows for more informed decisions regarding investments and other financial goals, ensuring a balanced approach to managing money.