What are different categories of spending?


I know that many of you have been struggling to save money. I know that it feels like every penny is going to go toward housing, food and other necessities. But even if you live paycheck to paycheck, there are ways for you to get ahead financially. The key is in knowing how much money you need—and what kinds of things will help push those numbers higher up on your list of priorities.


Necessities are the most basic of necessities. They are things you need in order to survive, such as food and shelter. Clothing and transportation can also be considered necessities if they allow you to get around without being exposed to the elements or have no other way of getting from one place to another. Health care can be considered a necessity if it’s necessary for your physical well-being or mental health (for example: prescription drugs).


Investments are for the future. They can be in the form of stocks, bonds, mutual funds, real estate or any other investment. Investments should be planned for and thought out before making your decision to invest. You should have a long term goal for your investments so that you know when it’s time to sell them off and move onto another asset class or type of investment. Also invest in visa commercial card as it can save you money in the long run. 

There are many types of investments and it’s important to know what each one does before you invest in it. For example, a stock is a type of investment that can be purchased from a company in exchange for cash. When you buy a share of stock, you own a small part of the company’s assets and profits.


Saving is one of the most important things you can do for yourself. It’s an investment that gives you more control over your finances and helps you reach goals later on. You may want to save for a rainy day, retirement, or even your children’s education.

There are many different ways to save money in this world:

  • Savings Accounts: These accounts allow users to set up scheduled deposits into their account at regular intervals (e.g., monthly). The interest rate is typically low but will vary depending on how long it takes for the money from these deposits to grow into something bigger than what was originally deposited before being withdrawn again as cash or another type of investment vehicle such as stocks or bonds;
  • CD(s): Certificate of Deposit (CDs) also known as “certificates” are similar but often used only when there isn’t enough time left before maturity date arrives so that interest rates could be higher than those offered by savings accounts;
  • IRA(s): Individual Retirement Accounts offer tax advantages over traditional Roth IRAs since contributions made into either type cannot be withdrawn until after age 59½ whereas withdrawals made without penalty after reaching age 70½ would incur penalties equal  to half annually deposit amount plus other fees charged by institution providing IRA services

Contingency fund

A contingency fund is a separate account that you set aside to help you deal with unexpected expenses.

Contingency funds can be used for anything, including:

  • Paying your rent or mortgage if you’re late on payments
  • Making car repairs that don’t fall into the category of being covered by your insurance policy (such as replacing a tire)
  • Covering unexpected costs associated with having a baby (like diapers)


Have you ever wanted something but didn’t need it? For example, if your family is going on vacation and you have enough money for the trip, but don’t actually want to go anywhere. You could put that money aside and save up for a few months so that when your family gets back from their trip, there will be more money available for them to do as they please. However, if there are other expenses coming up in the future (like buying a house), then saving up might not be necessary anymore because those expenses will take care of themselves once they happen!

If you really want to save money, figure out what you don’t really need.

  • What is a category of spending?

The categories of spending are:

  • Eating out (restaurants, fast food)
  • Groceries (groceries, fruits and vegetables)
  • Electricity (electricity costs)
  • Water/sewerage/trash collection services like garbage pickup or trash disposal. In some cities these services may be provided by the city itself while in others they’re contracted out to private companies. This can vary depending on where you live!


Now that you know how to categorize your spending, it’s time to start saving money. At first glance, it may seem overwhelming, but don’t worry! If you follow our advice and make a plan for each category of spending—Necessities, Investments, and Savings—you’ll soon be on your way toward financial freedom.

By 12disruptors Admin

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