Needs vs. Wants
Jim and I have been through Dave Ramsey’s Financial Peace University, and even helped facilitate one. I “follow” Dave on social media and often re-post his stuff. I shared this the other day…
If you are doing well, financially, and have extra disposable income, and your purchase is within your means – if you want it, buy it.
HOWEVER, if you are struggling to make ends meet, have more month than you have money, and what you are thinking of purchasing is not a necessity… walk away – no… RUN away from it.
I know too many people that can barely pay their bills and put food on the table, and yet whatever they are thinking of spending money on is not a need!
First and foremost –
- · Food
- · Clothing
- · Shelter
These are NEEDS. Understand… they don’t need to be top of the line brand name items! When you don’t have extra money, Walmart has great food prices, you can buy decent clothes at a thrift shop, you don’t need to live in a mansion. Basic needs are a must – once you have some extra funds, then you can upgrade.
Next, I suppose a cell phone would be a need, in our society these days. A basic cell phone that makes and receives calls – NOT a smart phone!
In today’s day and age, we travel to get to work. Transportation could be a bus pass, a bike, or a car. A car that get’s you from one place to another – not the top of the line coolest care out there. Again, basic needs – upgrades come when you can comfortably afford it.
If you are struggling with money – BE WISE! Ask yourself if what you are thinking of buying is a want or a need. Be honest with yourself. If it is not a need – don’t buy it!
As Dave says, “Live like no one else, so you can live like no one else.” Translation: be frugal now so you can have extra money to blow later – grin.
*Pam Horton is a life coach in the Raleigh/Durham area. Contact her if you need help managing your personal finances.*