If 54% of a person's budget is dedicated to fixed expenses like rent and loan payments, what impact does this have on the ability to adjust the budget when unexpected expenses arise?

Fixed expenses such as rent and loan payments are difficult to change quickly. Since 54% of the budget is already committed to them, less money is available to redirect when an unexpected expense comes up. This limits flexibility, so the correct choice is “It limits flexibility because most of the budget is already committed.”

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