The main difference between needs and wants is that needs are boring and wants are fun, right? Wrong. But good guess. Financial experts say the best way to get in control of your money is to separate needs from wants. But what really qualifies as a need and what qualifies as a want?
Have you ever really paused to think about it? Understanding the real differences between needs and wants will open your eyes and help you see why certain purchases are not beneficial to your financial health or your budget. This concept of needs and wants may seem cut and dry, but it isn’t. When you break down the true meaning of needs and wants, each time you make a purchase you’ll consider how that purchase impacts your financial future. This simple, yet overlooked concept will change the way you approach money forever.
Attaining financial freedom will require you to make small, yet significant decisions with your money each day. If you feel you’ve lost your way, making one mindless spending choice after another, it’s time to pause and go back to the basics. Take a moment to understand the real difference between needs and wants.
Let’s start by taking a closer look at the definitions and then the big emotional trap you should avoid.