Seven Categories of Spending

Different types of spending and definitions

purchase-verb-the action of acquiring something by paying for it-noun-something bought or payed for

1. Required Purchases

Purchases that are necessary to maintain life and basic comfort. Food, clothing, and shelter are all examples of required purchases.

2. Investment Purchases

Preparing for the future in some way involving money.

  • College Funds
  • Stocks
  • Retirement Funds

3. Pleasure Purchases

Goods purchased to bring fun or happiness. Some examples of pleasure purchases are as follows: plays, concerts, theme parks, etc.

4. Convenience Purchases

Purchases to make life easier or to save time. (Vending machines or fast food)

5. Ego Purchases

They are items purchased just for the sake of showing off.

  • Over-sized house
  • Expensive Car
  • Name-brand Clothing

Traditional Purchases

Purchases made without rational thinking.
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Guilt Purchases

Irrational purchases made because you feel like you have to or are obliged to. (Weddings, showers, birthdays, etc.)
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