YOUR WANTS AND NEEDS. Posted on September 09, 2020 15:20
WHY YOU SHOULD FIRST PURCHASE ‘NEEDS’ BEFORE ‘WANTS’. In making choices, the very first things to consider are your ‘needs’ and ‘wants’. What should first be attended to? Wants are desires for goods and services we would like to have but do not need. Many wants may seem like needs. Needs are a special kind of want, and refer to things we must have to survive, such as food, water and shelter. They are indispensable. You can argue that everything else is not imperative, but this is where the lines start to blur. The reality is, we make many of our purchasing decisions subjectively rather than objectively.
For instance, some people consider health care to be a necessity. For others, benefits are a luxury. When the affordable care Act[ACA] was passed in 2010, people started facing stiff fines for going without coverage. Despite this federal mandate, millions of working Americans remain uninsured because they are simply unable to afford the premiums.
UNDERSTANDING YOUR NEEDS AND WANTS. Other purchases can technically be categorized as a need, even though most would consider them a want. Does eating an expensive meal at a high-end restaurant qualify as a need? Or what about clothes? Do you have to stick with generic sneakers or can you splurge on a pair of expensive Adidas? Ultimately, it's all about perspective and how you choose to manage your money.
FACTORS IN HIDDEN COSTS. Often we purchase something new without thinking of the additional costs we’ll incur as a result. That shiny new vehicle is gorgeous, but what about the added costs of higher registration and insurance rates? The fancy new phone sure looks fun, but does that new data plan fit with your budget? When you stop to think about the total cost of something, you might discover you’re perfectly content to keep what you already have until you truly need something new. When you start thinking about potential purchases in terms of needs and wants, you’ll start making more thoughtful buying choices. Another helpful trick is to think about potential purchases in terms of hours worked. Once you figure out how many hours of your labor it takes to purchase an item, it might not be so appealing after all.
5 QUESTIONS TO ASK YOURSELF BEFORE MAKING PURCHASES. it would be great if every purchase we made was carefully thought through and planned in advance. We would budget, save and only make the purchase if we could pay for it in cash, right? The truth is, almost everyone is vulnerable to making impulse purchases, both large and small. But while it can be fun in the moment, impulse shopping can also cause feelings of guilt and regret, not to mention financial hardship and debt. So how do you find the middle ground? Asking yourself these five questions will help you stop and think before making a purchase. * Do I need it? * What is the real cost? * How long will it make me happy? * What do I gain by buying this? * Is there something else that can bring me joy?