Yon now know the difference between needs and wants and how they affect your financial decision and even financial goals if not well-managed. Why you still struggle financially is because you have not become aware of the difference between your needs and wants and how to manage or go about it, you keep experiencing financial woes. At this point in your life you should know what you need and what you want and learn to achieve balance between the two so that you can achieve your financial goals in life.
Years ago, our needs were met and we had limited wants but now the level of wants has grown more than needs because of the introduction of exceptional products and services that have eroded the market with great marketing advert positioned in places that can easily capture our mind and attention and the more money you make the more your wants increase too. With this increasingly purchasing more wants, your ability to save, invest or start your side hustle depletes and you lose focus financially.
Years back, I could not prioritize or differentiate between needs or wants, I just bought whatever I want when I hunger for it and I never delay gratification for anything till I became financially aware of my financial status and what I have been doing to myself and started working on myself to change my ideology about money. I realized that there are somethings in life I don’t really want or need, and I started trying to balance my financial life.
I once know some friend years back who was always in financial lack. Once his salary comes, its all gone because of too much wants in his life to the extent that he goes to financial institution to get loans to manage his bad debt, always living him in financial distress.
DIFFERENCE BETWEEN NEEDS AND WANTS.
(1) Needs are individual requirement that must be meet for your survival and important for your day to day existence and fulfillment of a good life. You need air, shelter and many more to survive because without them your existence is inevitable while Wants is just a hunger or desire for a product or service which is but for a passing moment.
(2) Needs are limited meaning they are restricted in size, they are few, but your Wants are unlimited because there’s always need product and services invade the market everyday to draw and capture your mind and attention and makes you desire to have the product or service.
(3) Needs is something you must possess or must have for your existence, comfortability and conduciveness while Wants is what you wish and desire to have to live comfortably and for flamboyant lifestyle.
(4) Needs remain the same; its variable or qualities under a set of given conditions always remain the same in all circumstances but Wants will always change with time if new products and services are introduced into the market to meet your needs and make desire to have the latest one in the market.
(5) if needs are not met or fulfilled, it leads to ailment and death most times but wants lives you destabilized, unhappy and disappointment for a time range.
6 WAYS TO MANAGE YOUR NEEDS AND WANTS
How do we achieve balance between needs and wants and manage them well? We need to master the art of balancing and managing your wants and needs to achieve your financial freedom. Here are ways to balance your needs and wants:
-Separate your needs and wants
-use your time well
-create a budget
-Focus on your financial freedom.
A life of simplicity can help manage your needs and wants and separate them well. To help achieve your financial freedom, a life of simplicity is very important by adjusting your expectation and living appropriately right. You need to develop the habit of living below your means to achieve financial freedom.
SEPARATE YOUR NEEDS AND WANTS
At this point in time, you should become financially aware of your financial status and know the impact of your wants on your finance and how to manage your wants and needs by separating them from one another.
Controlling your wants and sticking to the list of your needs according to your scale of preference takes a level of discipline to achieve. It’s easier to say but it requires more effort and dedication to act on this to get the required result. You also need to maintain self-control for your frivolous buying or else you get financially drained. You must deal with the pattern of not understanding between your wants and needs and know how to deal with the addiction of more wants than needs. To buy somethings, you need to ask yourself critical questions with answers to give you reasons to buy your wants or needs.
USE YOUR TIME WELL
Good usage of time will help manage your need and wants and that is one of the way to balance your needs and wants. Also, how you spend your time matters a lot and what you get exposed to matters too. You need to start spending time on what will help you in achieving your goals and becoming financially free than more time on things that depreciates your net-worth. Now is the time to invest more time on yourself and future to break the paycheck to paycheck lifestyle.
CREATE A BUDGET
You need to create a budget and act on it. With a budget, you can control your needs and wants. You will know what goes out and comes in and where it went. If it takes time and effort to start working on budget, do it to help you have a financial focus. Budgeting makes you financial disciplined, focused and help achieve your financial goals.
FOCUS ON YOUR FINANCIAL FREEDOM
You need to focus on achieving your financial freedom than letting wants to lead you down the drain. You need to start saving and investing as soon as possible to plan for your financial future. Plan for your retirement, start today by plan and thinking of making tomorrow better than wasting it away frivolously today. If you need help to achieve your financial dream, work on it and get the needed help.
You now know the wider difference between needs and wants and how it helps influence your financial freedom and existence. If needs are not met your existence is at stake but wants is just for a passing moment that lets you down. the key difference between the two of them is their level of significance.