What is commonly included in the definition of a personal fixed cost?

A personal fixed cost is an expense that does not fluctuate in amount and typically must be paid on a regular basis, such as monthly or annually. One of the most common examples of fixed costs in a personal budget is mortgage payments. These payments are usually a set amount that remains consistent over time, unless there is a change in the loan terms or interest rates.

In contrast, other expenses like utilities can vary from month to month based on usage, making them variable costs rather than fixed costs. Grocery expenses also tend to fluctuate depending on consumption and market prices, and entertainment costs are often discretionary and can vary greatly based on personal choices, thus they are considered variable as well. Therefore, mortgage payments stand out as the most representative example of a fixed cost among the options provided.