Whether you plan for it, or not, all the money that you spend can be categorised into 3 types.
For a smart spender like you who uses Hubble Money App, there are many five types of spending you should do.
Each of these spending types serve a particular purpose.
Understanding these types of spending can help individuals and businesses make more informed decisions about how they use their money.
- Essential spending: This type of spending refers to the money that is necessary for basic survival, such as food, housing, and medical care. Essential spending is often considered the most important type of spending as it is necessary for maintaining a basic standard of living.
- Discretionary spending: Discretionary spending refers to money that is spent on non-essential items, such as entertainment, luxury goods, and travel. This type of spending is not necessary for survival, but it can bring individuals and businesses pleasure and enjoyment. Hubble Money App allows you to get more value out of your discretionary spending money.
- Investment spending: Investment spending is money that is spent on assets that are expected to appreciate in value over time, such as stocks, real estate, and small businesses. This type of spending can be a good way to grow wealth over the long term.
- Saving: Saving refers to money that is set aside for future use, rather than being spent immediately. Saving can be used for a variety of purposes, such as buying a home, paying for education, or planning for retirement.
- Debt repayment: Debt repayment refers to money that is used to pay off loans or credit card balances. This type of spending can be important for maintaining a good credit score and avoiding financial trouble.
In conclusion, understanding the different types of spending can help individuals and businesses make more informed decisions about how they use their money. Essential spending, discretionary spending, investment spending, saving, and debt repayment are all important types of spending that can have a significant impact on an individual's or a business' financial well-being.