Know the Difference Between Needs and Wants and Save Money

Generation Selfish

Through the Great Depression, folks made do with what they had given it was the way to survive at that time. This mindset was also taught to the children of the time. My generation, born between 1960 and 1985, then hit the scene. The most materialistic decade was the 1980’s, due to the good economy. Because of this, the debt generation was spawned because they want everything handed to them. As adults, we still expect this and rack up a large amount of debts, trying to get what we want.

What Needs Actually Mean

Because Individuals have gotten everything they needed as youngsters, they do not understand the distinction between needs and wants. When they buy the computer, they say they “need” it. If they buy a TV, they claim they “need” it as well. Needs are not applied in these ways. We stay alive within our environment from our needs. Meeting your needs does not put you into debt, and as you learn what they are, you can get out of debt quickly. Being alive and healthy is a direct result of having your needs met. Your basic needs usually do not include the best electronics.

Wants Meaning

When somebody claims that they just "need" to have that one-of-a-kind coat, you’ll be able to pretty much bet that they don’t understand the idea of "wants". Really, a want is what you think you need, even though you just desire it. Consumer debt falls into this category. Many items within your house will most likely fit into the “wants” category.

Cut costs by Separating the two

The only way you are going to save money ultimately is to separate your needs from your wants. It will take getting precise about what you really need to survive on. To assist, you can make a list with two columns. NEEDS will be the label for your left side. On the right side you are going to label WANTS. On the left side, write down everything that sustains you and helps you survive. Write down things like food, water, shelter and clothing. If you or a member of family has special needs, such as an oxygen tank, write this down on the left side. Any items that do not fit on the left side should be written on the right side. Toys, furniture as well as your computer will go on this side.

Both Sides Should be Compared

Now, check out both sides. The left side should be shorter, because you need very little to survive with. This could be very revealing as you get authentic with yourself and your finances. Is it becoming quite clear that you are spending too much money? Indulging in your wants is fine. Saving money and getting out of debt requires that you’re clear on your needs versus wants. It is fine to spend money on your wants. Realize that your wants are not the same as your needs. Your wants have gotten you into debt, so reduce the amount of money you spend on your wants and get rid of debt.