What’s the difference between a need and a want? This is a difficult item to understand when we live in a world where everything we see advertised in front of us makes us feel it’s a need. We need the latest phone, we need the latest model car, we need to have more “toys”, we this, we need that, and the list goes on and on. Everything we see all day whether on TV, internet, magazine, etc. is written in a way to make us feel it’s a need. Marketing to us like this does 2 things:
- Makes the companies more money as it boosts sales
- Drives us deeper into debt keeping us broke
Do we really need the latest and greatest item every time it’s updated? Do we need new just because friends / neighbors get new? No, these are just wants that our brains have transformed into feeling like a need because of how they are marketed to us. The good news is that we can “reprogram” our brain and fill it with financially healthy habits!
We have the power to make a decision that will best suit our family’s financial well-being. Making these decisions is the most powerful decision you can make for yourself and family. Deciding to create healthy financial habits is a huge and difficult step.
Making this change will create healthy financial habits for generations to come! Let that sink in for a moment, what will that look like for your grandchildren? That’s what I call “Leaving a legacy!!”
The following items are what I consider main (high level) categories that should be in every budget (Needs):
- Giving – Living a generous life with an open hand will allow money to flow in and out naturally according to how we have laid out our budget.
- Savings – We need to do this because if we don’t pay ourselves, who will?
- Housing – We need a roof over our heads.
- Food & household essentials– Food on the table.
- Clothing – Basic clothing.
- Transportation – Means to travel to and from work.
- Utilities – Basic utility bills (Heat / Air, Electricity, Gas, Water / Sewer, etc..)
- Medical – Basic medical needs
- Future Use Funds – A plan for upcoming purchases to avoid going into debt!
Now to call out some of the wants that are often placed into our categories and listed as a need. Things that fall into the want category are:
- Cable / Satellite TV
- Latest model car / truck
- Latest model cell phone
- Latest model TV
- Another purse
- Another pair of shoes (when we already have many)
- New furniture (when what we have sits just fine)
- ETC…
I think you get the point. Before you tune me out, yes, there are ways we can incorporate splurging for wants in a healthy manor, but that will be discussed in another blog. Living a lifestyle where our Needs and Wants are in their proper categories will allow for us to live a more satisfying life. Yes this will go against what mainstream media will tell us, but saying NO to things that aren’t a necessity will bring peace into your home. Living in a home where financial stress is either non-existent or very minimal makes for a much healthier life overall. Happiness is contagious!
With 2020 being what it was, and 2021 starting off in a similar fashion, I would like to challenge you all too really think about what you consider a Need / Want. Take a hard look at your monthly expenses and see if there are things you could eliminate and reduce self-induced anxiety / stress. Have these discussions with your spouse or even as a family. Incorporating the kids into these conversations brings everyone closer creating a deeper bond with you as parents. I even take it as far as telling my kids and spouse to help hold me accountable. When I’m in the wrong they have full permission to call me out and help hold me accountable to what we have defined as healthy family habits.
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