Needs versus Wants? - To figure out and manage our finances

by - Tuesday, May 19, 2015

“I believe that life is hard. That we all are going to walk through things that are hard and challenging, and yet advertising wants us to believe that it's all easy.” - Jamie Lee Curtis

There’s always have the difference between needs and wants. Bought this iPad mini 2 after so much consideration. I know that 1.3k is not a big amount for some people, but to spend money on something can always be my biggest weakness. I look at it as my small investment, oh totally no Clash of Clans LOL

Sometimes, we tend to think everything is our needs, but there’s always have hugh gap between needs and wants. I’m still trying to educate myself to spend on my needs more than my wants.

I have been using iPad 1st generation for almost 4 years and guess what, it decided to die a few months ago. I really need my tablet for meetings and to manage my day. It’s funny how I felt lifeless without technology. The cost to fix the crack screen is RM500+ and to fix the charging issue is RM300+. It’s totally ridiculous and I think to get new one is always the better option.

The last time I talk about needs versus wants was during my financial class few years back in Taylor’s University. But most of the time I’m having a hard time to choose which one is my needs, and which one is my wants since everything seems to be my needs.

Everyone seems to know how to manage their finances, but how does someone manage can be the question. It’s important to understand  the difference between needs and wants so that you can manage your finances. Unfortunately a lot of people have misunderstand between needs and  wants because the answer can be very subjective. It’s really important to draw the line.

I’m a discount hunter. I always purchase stuff during sales.

In my definition, wants is something what my brain told me to get and most of the time it affected from what I see. However, when you talk about needs; in my definition, needs can be broken into two categories; investment needs and personal needs.

Investment needs such as: Technology, transportation, personal care, etc
Personal needs such as: Food, clothing, shelter, etc

It’s not necessarily wrong to spend money on the things you want but may not need. After all, we should reward yourself after the hard work isn't? In fact, the comfort and convenience of wants can add to your quality of life.

However, never get me wrong. Never put wants as your priority. It’s important to spend on wants after all what your needs are taken off. Once you understand the difference between true needs and wants, you will be more likely to make money decisions that lead your family to financial freedom.
Remember one person’s wants may be another person’s needs, so make sure to focus only on your financial situation and not to compare yourself to anyone else.

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