Differentiating between wants and needs can be difficult for many people, and if you can’t tell the difference, it may hold you back and prevent you from learning how to save money.
The average person has a lot of debt. They might have credit card debt, loans on furniture, a mortgage payment, a car payment, and more.
However, if you want to improve your financial situation, whether this means getting out of debt or to stop living paycheck to paycheck, you are going to have to face one major thing – distinguishing between wants and needs.
Some items are needs, but many of the things we buy are actually wants. And, confusing wants with needs may be causing you a lot of financial stress.
Remember, the only things you actually need include a place to live, a certain amount of clothing, and food and water.
To quickly determine the difference between a want and need, think of a need being something required for survival. Needs are water for drinking, food to eat, clothing to keep you warm, and shelter to live in. [Read more…]