Most people get jobs or start side hustle to earn money, so they can pay and acquire the things they need. Unless you have an unlimited amount of money, very little people do, you must know your needs so that you can spend your money wisely. Even though we need food and water to survive, we don’t need coke or Pepsi because these things are wants.
These things we truly can’t be without. Some needs don’t cost any money at all – we all need air, but you don’t need to pay for it. Needs are limited because it has a time frame. It also varies between people in different socio- economic system. It is a matter of interest and how you manage it. when your needs are met, in the same process, you start developing other needs, meaning to a level you make and remake your own nature by your desire and hunger for a thing.
When you develop awareness for things, your needs arise, you work to satisfy those needs.
To achieve financial freedom, you must know your needs and know how to budget for them and know how to manage them so as not exceed your spending limit.
WHAT ARE NEEDS?
A need is something that a person must have to thrive. Without it, that person will suffer either physically or mentally. Need is something needed to survive. Needs are things we must have to survive. Needs makes us act for satisfaction. It is necessary for a healthy living and comfortable life. Needs include: clothing (basic, like t-shirts and socks), health care, savings (for an emergency fund and retirement), security, safe environment and many more.
TYPES OF NEEDS
Our needs move from the smallest to the biggest once it is satisfied. When you satisfy the lower needs, your needs grow higher with time.
These are the 5 types of needs:
1) Physiological needs
2) Safety needs
3) Esteem needs
4) Self- actualization needs
5) Social needs
(1) PHYSIOLOGICAL NEEDS
These are needs essential for your survival, your existence will be in danger or extinction if these needs are not met. These needs keep you in good shape and being physiological sound.
Its totally not possible to live shelter, clothing, air, sleep and others. With somewhere to lay your head, you can think, meditate and reason well and feel comfortable.
(2) SAFETY NEEDS
These are needs for your security against infections, deadly diseases and worry less about everything. This can come also in form of job security, retirement plan, insurance plan, planning for financial security.
(3) ESTEEM NEEDS
These are needs to be accepted and valued by others. You want to be accepted and recognized for who you are. These need for esteem leads to being reknown, honesty and many more which is the lower- esteem needs while the higher-esteem needs are a respect for yourself leading to independence, self-confidence and freedom which leads to a level of growth.
(4) SELF-ACTUALIZATION NEEDS
These are needs for actualization, development, growth and desire to take responsibility and become better. Not everyone is interested in these needs just very little percentage who are totally focused and determined to achieve certain goals in life. As you grow and develop yourself, these needs change.
(5) SOCIAL NEEDS
These are needs to love and be loved by everyone around you. The need to be loved and cared for which is more important than the psychological and security needs. It’s a need for a sense of belonging and affection. Friends, families, and relationship is of utmost important to meet these needs.
Now you know the type of needs and its impact on you. How psychological needs helps you to be sound in thinking, meditation and decision making. How your psychological needs can affect your finance if well- managed and controlled. With psychological needs, you work towards your safety needs to project and plan for your financial future by saving and investing and budgeting to meet your needs.
You want to have a level of self-esteem and acceptance among people. You want to belong to certain class that have the same mindset as you and get you connected to people of the same network.
Working with people of the same mindset is because of self-development and actualizing your goals through investing in yourself to develop yourself and grow your finance and get better every single day.
Finally, social needs to be in the midst of friends and families to be loved and cared for, you need people to talk to about your financial life or any other area of your life to know where you are and how far you have and how to help you improve and give you ideas and advice to make the best decisions from.