Figure Out the Difference Between Wants and Needs February 10, 2009

It is extremely important to your personal budget to no mix up the difference between wants and needs.  Make sure you understand what each of them mean.  Don’t make the mistake of thinking they are the same thing.

Needs you have make it possible for you to sustain life.  These are the basics: food, clothing, shelter, and transportation.  The other things that enhance or improve the quality of your life are wants.

That’s not to say you shouldn’t have any wants or that you don’t even deserve them, because I’m sure you do!  But I’m just asking those with sufficient for their needs to not go too extravagent in purchasing their wants.

Having a car is a need.  Having a really really expensive car is a want.  Any questions?

If you are smart enough to humble yourselves enough to believe me, your budget will love you forever.

2 Comments
dizzed February 10th, 2009

Hmm… I think I probably want waaaaaaay more than I need.

pligg February 10th, 2009

Great advice! People are living way beyond what they need these days. Like you said, it is fine to want some things, but people always take it too far.

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