Is it possible to have a working budget without including fixed monthly expenses?

A working budget is a comprehensive plan that outlines both income and all types of expenses to provide a clear picture of one’s financial state. Fixed monthly expenses are integral to this because they represent regular and necessary obligations like rent or mortgage payments, utilities, and insurance. These expenses do not fluctuate from month to month and must be accounted for to accurately assess how much discretionary income is available for variable expenses or savings.

By excluding fixed expenses, the budget would not reflect the true financial responsibilities and could lead to overspending or financial mismanagement. Therefore, a budget that omits fixed monthly expenses cannot be considered functional or reliable, as it does not provide a complete view of all obligations and their impacts on spending and saving. This foundational element ensures that individuals plan effectively for both necessary costs and potential financial goals.