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Fixed expenses are necessary payments like rent, utilities, and insurance, while variable expenses are optional expenses like dining out and shopping. However, the line between the two can be blurred. Fixed expenses can sometimes be adjusted to save money, such as choosing a cheaper housing option. For example, you could live in an apartment for $500/month or a house for $5000/month. Similarly, you need to eat, but you could spend $100 at the grocery store for two weeks of meals.
