How's your Mindset

Wants Vs Needs

Do you actually need it

I see it, I need it, I want it, I'll buy it, this is what we say to ourselves. However Ariana Grande says, "I see it, I like it, I want it, I got it"; but are we all like Ariana? No !

In our modern society it's all too easy to conflate wants with needs, and if we were all pop stars this wouldn't be an issue but for a large percentage of us, we aren't able to buy whatever we want, yet we try. The distinction between a want and a need is pivotal for personal finance, mental well-being, and overall happiness. While needs are often defined as the essentials required for survival such as food, shelter, and clothing; wants are those extra luxuries that enhances our lives but are not strictly necessary. Understanding this difference can help us make informed choices that align with our values and financial realities.

Needs are the basic requirements that allow us to live and function daily. For instance, having a reliable vehicle may be essential for commuting to work, running errands, or attending social events. However, the type of vehicle we choose can often blur the lines between what we need and what we merely want. While a dependable, economical car fulfills the need for transportation, opting for a $50,000 luxury vehicle can stem from a wanted desire for status or to impress friends, rather than a necessity. This confusion between wants and needs can lead to significant financial strain, as individuals may find themselves stretching their budgets (Do they even have one) to accommodate luxuries that add little true value to their lives.

We understand the allure of material possessions often overshadows our fundamental requirements, as advertisements tout the latest gadgets, upscale brands, or luxury experiences, making it easy to feel that we need these items to fit in or succeed. This societal pressure can further blur our understanding of what is truly needed to lead a fulfilling life.

Keep in mind that a new luxury car may come with premium features and exquisite style, but if that same vehicle results in crippling debt, or a lack of funds for more pressing needs, like savings for an emergency or future investments for personal growth; so, overspending can ultimately create more harm than good.

Everyone should always evaluate how a particular item or experience contributes to their life. Ask yourself, does it facilitate your daily responsibilities, enhance your mental health, or support your long-term goals?

If the answer is no, it's likely a want rather than a need. Moreover, performing a cost-benefit analysis can provide clarity. For example, consider the long-term implications of purchasing a high-end luxury car versus a dependable, budget-friendly vehicle. "Will investing in the luxury car significantly improve my quality of life, or will it simply limit my ability to meet needs in the future?

I'd also like you to recognize that wants aren't inherently bad, as they can enrich our lives and serve as motivation for hard work and saving. The key lies in balance and moderation. Allocate your resources wisely, ensuring that your fundamental needs are met first. If you find extra disposable income is available after investing in a proper savings account (such as a money market account), then consider treating yourself to a want without compromising financial stability or emotional wellbeing.

In conclusion, differentiating between wants and needs is vital for a healthy and fulfilling life. It allows us to prioritize effectively, make informed financial decisions, and ultimately cultivate true happiness. So, when faced with the decision of whether to splurge on that luxury item or choose a pragmatic alternative, remember to reflect on whether this purchase is truly a need or simply a want, and this is the key step towards mastering your finances and, more importantly, your life.

Welcome to Wants Vs Needs

Click the button below and view the up coming Mind Set Zoom Meetings dates and times

Lets talk about it!

Click Play for narrator