Purchase Categories Definition

There are four primary purchase categories:

-Necessities: Necessities are items that you need in order to live, such as food, shelter, and clothing.

-Discretionary: Discretionary items are those that you don’t need in order to live, but that you may want or enjoy. Examples include entertainment, vacations, and luxury items.

-Emergencies: Emergencies are unexpected expenses that come up suddenly, such as car repairs or medical bills.

-Investments: Investments are items that you purchase in order to make money, such as stocks, real estate, or businesses.