Home
>
Wealth Building
>
The Difference Between Wants & Needs

The Difference Between Wants & Needs

So you want to become wealthy? While there is no single road to getting there, it's a sure bet that one principle is in place for those who keep their wealth over a lifetime. Live beneath your means. Spend less than you make. Don't spend more than you can afford. It doesn't come any simpler than this. If you want to create wealth, you have to learn to do this. It doesn't matter if you make $10,000 a year or $1 million, if you don't learn how to master the step of spending less than you earn, you'll never create lasting wealth.

While the concept is simple, chances are you are not following it. In all likelihood, you are living paycheck to paycheck, treading water. No matter how hard you try, you never seem to get ahead. Even when the raises come, the money still disappears just as fast. If this sounds like your situation, you probably have not mastered the difference between needs and wants.

First, it's important to realize that wants and needs are not the same. When you read that sentence, you probably said to yourself, "Of course, everyone knows that." Again, while everyone may know this intellectually, it is a good bet that you aren't completely honest with yourself when it comes to the things you purchase.

How many times have you heard (or for that matter said yourself) "I absolutely need (fill in the blank)" when in reality the meaning was "I really want (fill in the blank)?" I can't live without those shoes...I will die if I can't have that ring...I simply have to have that car...the list can go on and on. Please don't get me wrong. These are phrases that we all use. That is why it's important to step back and remember that wants and needs are not the same.

It's important at this point to make clear that taking the time to critically look at your current lifestyle and what are the true needs versus those things that are convenient wants will go a long way in saving you money and enabling you to spend less than you make. Let's take an example of your TV. Is your TV a need or a want? Although I can hear the arguments already rationalizing why a TV is a necessary part of your life, the truth is that it is more than likely a want. In most cases, it is probably an affordable want (The exception may be if you decided you had to have that 50 inch state of the art plasma television with the price tag of a small car). The question is whether the digital cable TV, 6 premium channels, satellite dish, the on demand movies, the DVD player with movie selection, etc are all also affordable wants?

Here is a list. Take a few moments to jot down what is a need and what is a want.

shoes

designer suit

water

large apartment

bed

ice-cream

lottery tickets

car

entertainment center

club membership

lunch

concert tickets

trip to Hawaii

medicine

necklace

computer

daily espresso

cellular phone

golf clubs

furnishings

Unfortunately, the answers to these questions are not completely black and white. What may be a want for one person may be a necessity for another person. For example, let's take a look at a computer. If you make your livelihood on the computer, then a computer is a necessity for you. If you only use a computer to play the latest online games, then it isn't. Knowing this, we can still make some pretty good guesses as to what are wants and what are needs from the above list for most people. Shoes (and clothing in general), water, bed, car, lunch, medicine and furnishings are good bets to be needs. Now that doesn't mean that the latest model, 4 wheel drive sport utility vehicle with all the extras counts as a need for most people, but basic transportation to make a living does.

A large apartment, computer and cellular phone may or may not qualify as a need depending on your particular circumstances while a designer suit, ice-cream, lottery tickets, entertainment center, club membership, concert tickets, trip to Hawaii, necklace, daily espresso and golf clubs all probably fall into the want section.

If you can take the time to start being honest with yourself, you will find that a lot of the things which you assumed were an absolute necessity until now are in reality nothing more than wants. Once you distinguish between the two and look at these issues objectively, you have placed yourself in the position to live within your means by simply asking yourself whether or not an item or service you are about to purchase is a need or merely a want.

This article may be freely distributed so long as the copyright, author's information and an active link (where possible) are included.

A complimentary copy of any newsletter or a link to the site where the article is posted would be greatly appreciated.

About The Author

Jeffrey Strain has published hundreds of money saving articles and the creator of the Daily Money Saving Challenge Program. He is the co-owner of http://www.savingadvice.com -- a website dedicated to saving you money. http://www.savingadvice.com

Airbnb cleaning service Glenview ..

In The News:

ChatGPT 2025 now connects to Apple Music, Canva, Expedia, TripAdvisor and OpenTable through built-in apps that help users create playlists, design graphics and more.

Apple releases emergency patches for two zero-day vulnerabilities actively exploited in attacks. iPhone and iPad users urged to update immediately.

DoorDash launches Zesty, an AI-powered social app that recommends restaurants through conversational search, now testing in San Francisco and New York.

Cybersecurity firm Infoblox reveals that over 90 percent of parked domains now redirect visitors to scams and malware, making simple typos extremely dangerous.

The Fox News AI Newsletter covers the latest artificial intelligence technology advancements, including the challenges and opportunities AI presents now and for the future.

GPT-5.2 is now live for all ChatGPT users with improved coding, writing and image interpretation, with Kurt Knutsson offering his review.

New iPhone replacement scam uses pressure tactics and fake carrier calls to steal devices from buyers. Criminals claim shipping errors and demand urgent returns.

Amazon Ring's new facial recognition feature sparks privacy controversy as Electronic Frontier Foundation critics argue the AI upgrade expands surveillance risks.

New Android banking trojan Sturnus steals credentials, reads encrypted messages and controls devices.

Denmark's 3D-printed student village proves automation builds 36 apartments faster than traditional methods. Skovsporet project shows housing future.

Discover Android's new Sound Notifications feature that alerts you to smoke alarms, doorbells, and baby cries even when wearing headphones.

New SantaStealer malware reportedly threatens holiday shoppers with password theft. This Christmas-themed info-stealer targets browsers and crypto wallets.

The Christmas season brings a surge in Netflix phishing scams targeting shoppers with fake emails. Stacey P received convincing scam but verified account first.

San Francisco Giants invite Jamie Grohsong to throw ceremonial first pitch at Oracle Park after he learned to play baseball with a bionic hand following an injury.

FBI warns cybercriminals are stealing family photos from social media to create fake proof of life images in virtual kidnapping scams targeting victims.

Instagram's new 'Your Algorithm' tool lets you control your Reels feed in real time. The app now gives you power to customize what videos you see.

Major Marquis fintech breach exposes 400,000-plus Americans' data through unpatched SonicWall vulnerability, with Texas hardest hit at 354,000 affected.

Free up iPhone storage fast by clearing large photos and videos from Messages app. Simple steps for iOS users to delete attachments without losing chats.

Scammers are flooding inboxes with fake tracking alerts that mimic real carriers, exploiting the holiday rush to steal logins and personal data.

The Fox News AI Newsletter brings you the latest news on AI technology advancements and the challenges and opportunities AI presents now and for the future.

Texas family reunites with missing 11-year-old cat Grayson after 103 days using Petco Love Lost's AI photo matching technology and community help.

Tired of AI customer service loops? These insider tricks help you escape "frustration AI" and get real human help when you need it most for urgent issues.

Unlock richer audio from your streaming apps with simple tweaks to volume normalization, equalizer settings, and quality preferences for cleaner sound.

Scammers are sending fake Facebook settlement payout emails that mimic legitimate notices from the privacy settlement administrator to deceive users.

Holiday shopping scams surge as fake refund emails target distracted consumers during Black Friday and holiday seasons, costing Americans billions annually.

The Difference Between Wants & Needs

Wealth Building