The remaining $7,000 out of $80,000 after spending $50,000 in goods and $23,000 in services can be categorized into savings.
Savings are the funds that remain after deducting a person's private consumption from their discretionary income over a particular period of time. Savings, then, is what's left over after all expenses and obligations have been paid for a household or an individual.
Cash or cash equivalents (such as bank deposits) are employed to preserve savings since they carry no possibility of loss but also offer extremely low returns. Savings can grown through investing but doing so requires placing money in jeopardy.
One is considered to be living from paycheck to paycheck when they are unable to keep savings, they just have money enough only for present consumption. Such a person frequently does not have sufficient money saved to survive on in the situation of an emergency, and they are at risk of incurring debt or going bankrupt.
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