Discuss the difference between fixed expenses and variable expenses as they relate to a budget.

The budget includes both expenses: fixed and variable expenses. Fixed expense cost the same amount each month and cannot easily be changed. Exampels for fixed expenses: rent payments, car payments, real estate taxes ...

Variable expenses on the other hand vary. They are daily spending decisions. Examples: buying clothes, restaurant, ...

If you want to save money, variable costs are usually the first expenses that you can try to cut.