Money Saving Tips: Wants vs. Needs
A huge part of saving money is being able to determine the difference between wants and needs.
A need is a necessity. It literally is something you can’t live without. Needs basically come down to basic food, clothing, and shelter.
A want is something that may be useful or convenient, but it you don’t need it to survive. Some examples of wants are eating out, buying name brand clothing, or having a big house.
For example, you NEED to clothe yourself, but you DON’T need expensive clothing. You NEED to eat, but you DON’T need to stop at the local drive through for lunch. You NEED to hydrate yourself, but you DON’T need to have soda. ETC.
This principle comes down to everything you buy, even the small and simple things. Whether it’s a candy bar at the service station, an second pair of shoes, or a bigger house with lots of extras, ask yourself:
“Do I really NEED this? Will I die without it?”
It may sound extreme, but it’s a very helpful way to consciously think about the things you buy, and it will end up saving you money if you apply the principle to your spending.
That doesn’t mean you can’t splurge once in a while, but forming a habit of only buying things that are needs will save you TONS of money!
What are the the wants YOU go without to save money?
Do you create other [inexpensive or costless] and satisfying alternatives for them?