Saving Money Wants and needs - saving tips

[Deleted member 13140]

I think it was last month that I was taught the difference between these two, wants and needs, not like I didn't know it but you know how private tutors work, they have to touch every aspect and see what you're missing.


Okay so I want to use this and help people to save money, and that is helping you separate your wants or atleast helping you understand the difference between your wants and your needs.

Now what's the definition of the two needs vs. wants. A "wants" is mainly used to describe a really strong desire to own or do something. And "needs" is described as a lack of basic necessities for survival (i believe everyone knows about the three basic necessities) such as food, water, and shelter.

The only difference between need and want is that "want" is a desire to acquire or do something but is not necessary for a person's survival, whereas "need" is necessary rather than attractive.

This is because wants and needs are both economic terms, but "needs" are something you require in your life, whilst "wants" are something you yearn for.

Now I want you to take a deep breath and ask yourself this very crucial Question


- Is that 42-inch flat-screen television really necessary? When money is scarce, only spend what is absolutely essential... and apply this to everything you want to buy.

Goodluck

 

[Abigael]

That is a very good advice and knowledge you have shared there. Saving truly requires one to really understand the difference between wants and needs. And I totally agree with you that needs are those necessities that you need to survive. While wants are those desires that make life more comfortable, but are not really important for survival.

Knowing this enables one to focus on satisfying needs first. You cannot spend money on your wants yet you don't have the basic needs you need in order to live. So when going to work, remember that the money you earn should be able to buy you a living.

The basic needs that you have mentioned are truly food, clothing and shelter. But you should also be careful not to be carried away by the desire to have these basic needs in plenty or in ways that you cannot afford. For example, wanting to wear clothes that are too expensive yet you earn only a minimum wage. Or wantig a 4 bedroom house yet you are not married yet and living alone.

It is important to know well how much you are earning and what you can actually afford with it. That way, you don't end up spending too much and getting into debt or lacking some of the needs.

 

[Rachael]

There is a clear distinction between needs and wants. Needs in a layman's language is something that has to be solved urgently and they could include; food, school fees, shelter, clothing whereas when we refer to wants, it is something which is not really needed and it can be improvised. Needs are urgent, primary and cannot be improvised whereas wants are secondary and can always find another alternative. To maximize savings and minimize costs, we need to decipher using our scale of preference which would help us to set out priorities right.