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How many times have you heard
(or for that matter said yourself) "I absolutely need (fill
in the blank)" when in reality the meaning was "I really
want (fill in the blank)?" I can't live without those shoes...I
will die if I can't have that ring...I simply have to have that
car...the list can go on and on. Please don't get me wrong. These
are phrases that we all use. That is why it's important to step
back and remember that wants and needs are not the same.
It's important at this point
to make clear that taking the time to critically look at your
current lifestyle and what are the true needs versus those things
that are convenient wants will go a long way in saving you money
and enabling you to spend less than you make. Let's take an example
of your TV. Is your TV a need or a want? Although I can hear
the arguments already rationalizing why a TV is a necessary part
of your life, the truth is that it is more than likely a want.
In most cases, it is probably an affordable want (The exception
may be if you decided you had to have that 50 inch state of the
art plasma television with the price tag of a small car). The
question is whether the digital cable TV, 6 premium channels,
satellite dish, the on demand movies, the DVD player with movie
selection, etc are all also affordable wants?
Here is a list. Take a few moments
to jot down what is a need and what is a want.
- shoes
- designer suit
- water
- large apartment
- bed
- ice-cream
- lottery tickets
- car
- entertainment center
- club membership
- lunch
- concert tickets
- trip to Hawaii
- medicine
- necklace
- computer
- daily espresso
- cellular phone
- golf clubs
- furnishings
Unfortunately, the answers to
these questions are not completely black and white. What may
be a want for one person may be a necessity for another person.
For example, let's take a look at a computer. If you make your
livelihood on the computer, then a computer is a necessity for
you. If you only use a computer to play the latest online games,
then it isn't. Knowing this, we can still make some pretty good
guesses as to what are wants and what are needs from the above
list for most people. Shoes (and clothing in general), water,
bed, car, lunch, medicine and furnishings are good bets to be
needs. Now that doesn't mean that the latest model, 4 wheel drive
sport utility vehicle with all the extras counts as a need for
most people, but basic transportation to make a living does.
A large apartment, computer
and cellular phone may or may not qualify as a need depending
on your particular circumstances while a designer suit, ice-cream,
lottery tickets, entertainment center, club membership, concert
tickets, trip to Hawaii, necklace, daily espresso and golf clubs
all probably fall into the want section.
If you can take the time to
start being honest with yourself, you will find that a lot of
the things which you assumed were an absolute necessity until
now are in reality nothing more than wants. Once you distinguish
between the two and look at these issues objectively, you have
placed yourself in the position to live within your means by
simply asking yourself whether or not an item or service you
are about to purchase is a need or merely a want.
Copyright (c) Jeffrey Strain |
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