Cut costs By Separating Needs From Wants

The Material Generation

During the Great Depression, people made do using what they had given it was the way to survive at that time. These habits were taught to the children of the time. A new generation was spawned between 1960 and 1985. A great economy created the 1980’s to be the most materialistic decade of the 20th century. This created the “give me” generation who wants everything handed to them. Large debts are now being charged as this generation of adults are still trying to get everything they think they need.

Meaning of Needs

Because people have gotten everything they wanted as children, they do not understand the main difference between needs and wants. A pc is classified as a “need” by them. Of course, they will also apply this to a television. These items are not needs. In any chosen environment, needs allow us to stay alive. You can find yourself out of debt very quickly as you come to understand needs. You stay alive and healthy with your needs met. Your basic needs usually do not include the best electronics.

Definition of Wants

When someone claims that they just "need" to have that one-of-a-kind coat, you can pretty much bet that they do not understand the idea of "wants". Your want is merely that which you desire and you also think you need. Most of your debt most likely comes from the “wants” category. Your house contents are most likely all wants.

By Separating the Two, You Will Save Money

The only real way you are going to save money in the long run is to separate your needs from your wants. Survival takes very little, so get very clear about what you truly need. You have to make a list with two columns. NEEDS will be the label for your left side. Label the right side WANTS. The left side is for everything that keeps you alive and healthy. This can include water, food and shelter. Special need items like an oxygen tank should also be written here. Write down all other items you desire or have on the right side. Toys, furniture as well as your computer will go on this side.

Both Sides Should be Compared

Now, have a look at both sides. As you need very little to survive with, it may be that the right side will be longer. While you get real with your finances, this can be very revealing to you. Can you see that you spend too much money? Indulging in your wants is fine. However, if you want to save money and get out of debt, being clear on your needs is the first step towards that goal. You can spend money on your wants. Just get clear that your wants are not the same as your needs. Stop spending so much money on your wants, so that you can get out of debt faster.