Next comes shelter. In an urban environment, this can mean anything from a rented room to a house on a quarter-acre block. Next comes transport. If a person wants to work, he must have transport of some sort. This can mean living near a bus route or railway station to owning one's own vehicle.
Medical expenses are also a necessity.
We cannot work when ill. However, medical treatment is generally provided free today. After we have provided for basic needs, we then can think about optional or discretionary spending. Optional spending includes such things as life assurance, new furniture, new appliances or a new car. It also includes recreational expenditure like holidays, eating out at a restaurant, cinema, golf, fishing, sailing etc.