February 21, 2023 Renny Doyle

How Do You Know When It’s a “Need” or a “Want”?

Seems pretty simple, right? Needs are things you can’t get by without. Things like your rent or mortgage, utility bills, food, healthcare, etc. Wants are the fun stuff like entertainment, dining out, travel, subscription services,  designer clothing, etc. But what about “needs that are really “wants”?

The line between a need and a want can sometimes get blurry. It’s not always black and white and it be hard to differentiate a need from a want. Whether an expense is a need or a want depends on how and why you use it.

For example, you need groceries to survive, but the chips and soda you put in your cart is a want. You may need internet service to run your business, but it’s a want if you are only using it for entertainment. You may need a place to store your equipment and supplies in your shop, but it’s a want if you buy the fancy cabinetry you saw in social media.

It often comes down to a choice. Understanding which expenses are and are not optional will help you create a strong budget. Now, this doesn’t mean that wants are bad. Afterall, they are what motivate us to find success. However, it’s important to not overspend on your wants. Set a budget for your wants, but make sure all your needs and savings are covered first. Never ever go over budget on your wants!

By rethinking how your needs and wants look, you can make the biggest change in your monthly spending and come out ahead!