Determine what Your Needs and Wants Are and Save Money

Generation Selfish

During the Great Depression, people made do using what they had since it was the way to survive in those days. The kids of that time learned from their parents and also lived with that mindset. And then came the current adult generation. Due to the good economy, the 1980’s saw essentially the most materialism in the 20th century. This created the “give me” generation who wants everything handed to them. Large debts are now being charged as this generation of adults are still trying to get everything they think they need.

Defining Needs

Because Individuals have gotten everything they wanted as kids, they don’t understand the distinction between needs and wants. A pc is classified as a “need” by them. This logic is also applied to “needing” a television. These are not needs. Needs help us stay alive in our chosen environment. Needs being met does not put us into debt, and you can get out of debt as you figure out how to distinguish them. Needs are an element that keeps you alive and healthy. The very best electronics are not basic needs.

Meaning of Wants

When someone claims that they just "need" to possess that one-of-a-kind coat, it is possible to pretty much bet that they don’t understand the concept of "wants". A want is actually something you desire and think you need it. Debt is mostly from the “wants” category. The contents of your house most likely fit in this category.

Separate both and Save Money

Really the only way you are going to save cash ultimately is to separate your needs from your wants. Survival takes very little, so get very clear with what you truly need. To aid, you can make a list with two columns. You will label the left side NEEDS. WANTS will be the label for the right side. Sustaining things that help you stay healthy should be written on the left side. Clothing, food, shelter and water are going to be here. Also, include anyone’s special needs items here, such as an oxygen tank. Now, write down all the other things on the right side that does not fit the left side. Make sure to include things such as toys, furniture along with your computer.

Evaluate Both

Now, check out both sides. Because you do not need much to survive, the longer list should be to the right. Getting real with your finances can help this exercise be revealing to you. Do you see that you spend a lot more money than you need to? Absolutely nothing is wrong with indulging in your wants. To save money and get rid of debt, get very clear on your needs first. It is fine to spend money on your wants. Recognize that needs and wants are not the same. Because you have let your wants get you into debt, you need to reduce the total amount you spend on them.