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

A fixed expense is an outlay that remains constant over time and typically does not fluctuate from month to month. Housing is an excellent example of a fixed expense because it usually involves a consistent monthly payment, such as rent or a mortgage. This amount is generally agreed upon in advance and does not vary depending on usage or seasonal factors, making it predictable and easy to plan for in a budget.

In contrast, groceries and utility bills can vary depending on consumption and usage; grocery costs fluctuate based on purchasing habits and prices, while utility expenses can change based on how much energy, water, or other services are consumed. Entertainment expenses can also vary widely from month to month based on individual choices and activities. Therefore, housing stands out as the clear example of a fixed expense in the context provided.