Needs vs. Wants

To have a successful budget, one must understand the difference between needs and wants. 

American author Robert Jordan once stated, “What you want, isn't always what you need.” Jordan's words are as accurate in modern times as when he spoke them. 

Given this, some would agree that there is a fine line between needs and wants. However, the ability to distinguish between needs and wants can play a significant role in your financial well-being.  

Needs are the basic essential substances one requires to live a wholesome life. The most common examples of needs are food, water, and shelter. Needs are important for survival. Wants are goods or services an individual desires to achieve personal fulfillment. Wants could range from luxury vacations to expensive material items such as game consoles, gym memberships, and jewelry.  

Society places an overwhelming amount of emphasis on leisure goods and citizens unknowingly justify why they need those products. Infomercials and advertisements play an important role in the temptation of purchasing commodities. This "urge" to obtain those items often time leads to a default within the budget. Once there is a blemish within your budget, it may be impossible to repair the damages. 

Understand, needs are a necessity, wants are wishes!

If you are following a strict budget, please consider the following questions below before you purchase a product. 

Could I live without this product? 

Do you need this product, or do you desire to have it? In the process of purchasing a product, consider if the product is something you need or something you can abstain from. Consider the importance of the product and then, determine if it's an absolute necessity. 

Does the price of the product compromise my budget? 

Would you have to make alterations within your budget if you purchased this product? Before purchasing a product, I admonish you to examine the price and decide if it is out of your price range within your budget. It is wise to consider your monthly expenses and other financial responsibilities when contemplating purchasing essential or leisure goods.

After you have carefully reviewed these questions, you can then determine if it is a necessity or a mere desire. Be sure to weigh out your options and do not be afraid to reconsidered acquiring goods. When using a discerning eye, you can distinguish between needs and wants and maintain a successful budget.