Wants vs Needs

Our inner child says 'I want it, I want it, I want it!' Our outer adult, in turn, says the item is not a need, and we have other, more important needs right now. We all feel these conflicts between our wants and needs.

Nearly all of us have a limited amount of spending money, and we cannot always fulfill all of our needs, let alone all of our wants.

Let's define these two terms:

• A want is an item or service that you could live without, whether temporarily or permanently. For example, a want could be a newer, larger TV.
• A need, on the other hand, is an item or service that is required to allow you to maintain your health and well-being (food, medicine, healthcare, insurance, etc), have a place to live (your home or apartment), household services (electricity, phone, etc) and transportation (a car to get to and from work). Some have other needs, such as a cell phone if they work outside.

Many of us (I'm guilty of this) will rationalize a new purchase and feel that the item which was a want yesterday is now a need, and should be purchased immediately.

In order to control my spending on wants, I've come up with the following test for determining when an item or service is really a need.

Ask someone (your spouse, a friend, a sibling, etc) the following question: Based on what you know of my financial situation, is this item (or service) a need, or is this item something that I can live without, at least for now? If they answer that it is a need, you should probably acquire it as soon as possible. If they answer that it is a want, you should probably wait to acquire it until you are in a better financial situation. It's ok to acquire wants, but only after you have a stable financial situation and can afford the item or service.

As I continue to ask my wife this question for each new thing that I think I need, counseling with her will help me keep my priorities straight and keep my spending under control.