Hey guys’ve again…:)
One of the things I have been conscious of in the last few months has been working through my budget or expenses and identifying what I consider a want or a need.
There are multiple guides online as to what should be considered a need, but at the end of the day, peoples circumstances and mindset dictate what is a need to them depending on their circumstance.
For me, most of my needs fall into the physiological and safety categories identified in Marslow’s theory(see diagram below).So for illustration purposes, my typical budget will look like this, rent, baby’s nursery fees, bills, credit card and debt repayment.All these listed fall under a must-do/needs category for me.Every other thing is a want as it makes my life more exciting or interesting but I don’t actually need it to survive.E.g of such things include ASOS clothing or shoe shopping and using streaming services like Netflix or Apple TV.
Your ability to discern or decipher which is which is what will help you achieve your spending goals, allow you to live within your budget/means but unfortunately this tends to become the tricky part.
I have been loving Dame Ramsey’s approach, as well as some YouTubers approach to minimalistic living and wise spending in general.Its something I have found to be interesting and incredible and actually very sustainable if you are disciplined.
As biased as this may sound,I would like to suggest that I favour that approach very much and would encourage readers to visit some of their content and start practising or living that way as I have tested it and it has been worthwhile.I have occasionally slipped, i must admit but in generality has been super helpful to me.
On needs and wants, a very honest and detailed review of your budget will be necessary to be able to decipher this so you know where to invest your money more and cut out debt or leakages.
Like I said for me, my wants are streaming services and are things I can generally cut back on to save some money and eventually get to the debt-free life I am aiming for.
As always,i hope this was a good read and all the best with reviewing your needs and wants.