Answer:
The best order of spending priority is from most important to the least important is:
1. Basic Necessities
2. Other high-priority expenses
3. Creditors or lenders
4. Yourself (saving)
Explanation:
1. Basic Necessities: The basic human necessities are given topmost priority, because without these cannot be lived without. The basic necessities include: food, mortgage/rent, utilities and transportation, but if the income is still not enough to handle all the basic necessities, the qualities and quantities can be reduced, for example, if chicken is more expensive than beef, beef can be used for food instead of chicken.
2. Other high-priority expenses: this comes directly after basic necessities, and they include; insurance premiums (health, home, car, and life), medical expenses, and other personalized high priority expenses.
3. creditors and lenders: the remaining money is used to clear the debts owed first, because this is a negative on your income.
4. Yourself ( saving); comes least on the list of priorities, but it is very important, because it ensures that there is money available to cushion any emergency needs that may arise.
