by Alex
According to Nik Halik, there are 4 types of expenses, all
of which are good, except one. The four types of expenses are as follows;
Lifestyle Expenses
Lifestyle expenses are expenses such as; eating out, vacations,
concerts, entertainment, and road trips. These are practically memory building
costs that involve other people. They are all good, but only in moderation.
Protective Expenses
These costs are associated with protection of important
things in life, such as; health, house, cars, and businesses. This also
includes all insurances; car, life, house, and disability. Also, this includes
an emergency fund to protect you from falling into debt. This type is also
good, but much easier to manage if you are wealthy.
Productive Expenses
These costs are those that improve your life, especially long
term improvements. This includes education, career, investments, and/or
anything that you need to spend money on to earn money.
Destructive Expenses
These are the worst type of costs. This includes bad habits,
credit card debts, and anything else that makes you spend money for nothing in
return.
All information attained from; http://www.budgetsaresexy.com/4-types-of-expenses-not-all-bad/
