I have a question: How do you really determine if something is a need or just a want? For example, is a cell phone a need or a want? I want to cut my expenses but it seems like I need stuff other people tell me are just wants and luxuries. Any suggestions would be appreciated.
I have a question: How do you really determine if something is a need or just a want? For example, is a cell phone a need or a want? I want to cut my expenses but it seems like I need stuff other people tell me are just wants and luxuries. Any suggestions would be appreciated.
The easist way to identify a need from a want is to think in terms of survival. In order to sustain life there are some things you "need" or must have. Food would be a good example. Without food you will eventually starve to death. In this case, chicken would meet our needs but filet mignon would go beyond a need and could be considered a "want." In regards to your cell phone just ask yourself if you need it to survive. It may not be required for physical survival but it may be essential for economic survival. Only you can determine that. Just be careful to avoid justifying all your wants as if they are needs. At the same time don't try to cut expenses so deep you eliminate all wants. An occasional filet mignon can be filling and "fulfilling" as well.
I also think you have to lay the groundwork and foundation before you can make that decision. If you have clearly identified your goals then it's easier to decide what things are needs and what are just wants. For example if your goal is to be financially free then anytime you are tempted to spend money on something just ask yourself: "Will this expense help me achieve my goal or will it just slow me down or detour me?"
I also think you have to lay the groundwork and foundation before you can make that decision. If you have clearly identified your goals then it's easier to decide what things are needs and what are just wants. For example if your goal is to be financially free then anytime you are tempted to spend money on something just ask yourself: "Will this expense help me achieve my goal or will it just slow me down or detour me?"
Good advice. Every successful business has a mission statement that helps them stay on course when faced with a decision. People need one too!
I have a question: How do you really determine if something is a need or just a want? For example, is a cell phone a need or a want? I want to cut my expenses but it seems like I need stuff other people tell me are just wants and luxuries. Any suggestions would be appreciated.
Here is a suggestion I found helpful which I learned from the d2p lessons: Instead of thinking in terms of needs and wants, change your thinking to terms like needs, comforts, luxuries and excess. Your needs are survival items like food , water, shelter, etc. Comforts are things that make life easier, like a microwave, cell phone, dishwaher etc. Once your basic needs are met then you should allow a certain amount for comforts. Luxuries are indulgences that are like special treats in life. For example transportation is a need to keep a job, but a car may be a comfort because it means you don't have to take the bus. A fancy sports car may be a luxury that you afford yourself after your needs and comforts have been taken care of.
I found that by structuring my expenses in that way (needs, then comforts, then luxuries) I wasn't feeling so deprived but actually was more motivated. I wasn't feeling I had to give up things I wanted, but instead was being more responsible and using my wants to inspire me.
I like this definition much better. It seems that everything in life is either black or white - life's too compicated to put things into 2 categories all the time.
I like this definition too! By learning to identify things as needs, comforts, luxuries and excess I found that I had a lot more things to appreciate in my life than I realized. The secret to a fulfilling life is to have all our basic needs met, some comforts, and even a few luxuries...it's the excess we need to be aware of and avoid.
