Search

Essential and Non-Essential Spending

 

Some spending is essential. This includes the basics such as food, fuel bills, rent or other housing costs. Apart from these obvious items, opinions will differ on which kinds of expenditure are necessities and which are luxuries. Various factors will affect this. For example, some people can’t manage without their phone. For others, cigarettes may be a necessity. High travel costs may be unavoidable if you live in a rural area. The point is that whatever your income, you have to make choices about how to spend it, and accept that buying one thing may mean that you have to go without something else.

But individuals will have different priorities.

Working out what is essential and what is non-essential is one of the best ways to manage your money better.

The quiz below asks you to identify the order in which you would spend your money.

Number the following expenditures based on how important you feel they are (what needs paid first?):

Clothes

Rent

Catalogue

Mobile Phone

Credit cards

Snacks

Court Fine

Food Shopping

Personal Hygiene

CD/DVD’s

Electricity & Gas

Pubs & Clubs

Money owed to a friend or family

Internet

Loan from a doorstep lender

Cigarettes

This order is a guide of what a small focus group decided was the proper way to spend money, selecting somewhere to live, food and electric as their top 3. Did your order match theirs?

Clothes

Rent

Catalogue

Mobile Phone

Credit Cards

Snacks

Court Fine

Food Shopping

Personal Hygiene

CD/DVD’s

Electricity & Gas

Pubs & Clubs

Money owed to a friend or family

Internet

Loan from a doorstep lender

Cigarettes

Think of how you can cut down on your spending and begin to save some money.

An example of someone buying a tin of coke everyday at 50p, if they buy one tin everyday at 50p in a year it would cost £182.50 (0.50 x 365 = 182.50) for just buying that tin!!!

Another example is a packet of 20 cigarettes a day at £6 costs £2190 a year (5 x 365 = 2190).

Where can you save some money?

continue arrow


change text size

Sub Pages