Read the article about fixed and variable expenses, then complete the following activity.

Article: https://www.thebalancemoney.com/what-s-the-difference-between-fixed-and-variable-expenses-453774

Setting A Budget

Using a budget is an excellent way to ensure you have enough money to spend and save. 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 your job and interest from the money you save. Also, each month you will have expenses. There are two main types of expenses: fixed and variable expenses. Fixed expenses, for example, rent, tend to be about the same each month. 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 or variable expense. For the month, Michael earned $908 and tracked expenses the month to help create a monthly budget.

Expenses

• Gas bill $71
• Car repairs $27
• Income tax $287
• New shirts $45
• Music CDs $38
• Going to the movies $31
• Eating out at restaurants $106
• Rent for an apartment $234

Task

1. Fill out the table below using the expenses Michael tracked.
2. Then total fixed and variable expenses.
3. Also, calculate total expenses.
4. Was income greater than or less than expenses for the month?

Michael's Expenses

Category	Fixed	Variable
Expenses
Taxes
Rent/Mortgage
Utilities
Groceries/Food
Clothing
Shopping
Entertainment
Misc/Other
Expense Subtotals:
Total Expenses (variable +fixed):