Basic needs

There are two levels of basic needs – physiological and safety. Expenses on these needs include:

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  • food,
  • hydration,
  • sleep,
  • accommodation/shelter,
  • clothing,
  • physical security.

However, all of these expenses can belong to higher levels of needs if, instead of cooking meals you tend to eat out or overstock your fridge to throw away the food which expires. Instead of a cozy but sufficient apartment, you live in a lavishly furnished and unnecessary big property, paying a high price for this, the list continues.

You can think of these expenses as Lifestyle-Upgrades instead of Lifestyle-Basics. They should not be paid for before more basic needs are met, such as a secured future (retirement). 

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