Saving Money Depends on Knowing Needs Versus Wants

The “Give Me” Generation

Throughout the Great Depression, people made do using what they had because it was the way to survive during those times. The kids of that time learned from their parents and also lived with that mindset. Then came my generation born after 1960 and before 1985. The economy took off during this time, making the 1980’s the most materialistic decade of the twentieth century. Because of this, the debt generation was spawned because they want everything handed to them. Thousands of dollars in debt is now facing the adults who wanted everything still.

Needs Meaning

Because people have gotten everything they desired as children, they don’t understand the main difference between needs and wants. If they buy a computer, they claim they “need” it. This logic can also be applied to “needing” a television. This does not define needs. In any chosen environment, needs allow us to stay alive. Needs usually do not put us deeply into debt, and when you understand what you really need, you’re going to get yourself out of debt very quickly. You’re kept alive and healthy through needs being met. A computer isn’t a basic need, nor is that fancy wide screen television.

What Wants Actually Mean

When someone claims they just "need" to get that one-of-a-kind coat, you’ll be able to pretty much bet that they do not understand the concept of "wants". Though you desire an item and want it, you think you need it. Some people with consumer debt can put their debts in this “wants” category. Almost everything you have at your residence will fit into this category.

Cut costs by Separating both

The only 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 with what you actually need. You have to make a list with two columns. The left side really should be labeled NEEDS. The right side should be labeled WANTS. The left side is for everything that keeps you alive and healthy. Items, such as water, food, shelter and clothing, will be on this side. If you or a family member has special needs, for example an oxygen tank, write this down on the left side. Items that do not fit the needs definition should be written on the right side. Toys, furniture and also your computer will go on this side.

Analyze Both Sides

Now, examine both sides. The longer list will be the right side, as you don’t need much to live on. When you get real with your finances, this may be very revealing to you. Can you see that you spend too much money? There is nothing wrong with indulging in your wants. If you want to save money and get rid of debt, getting clear about your needs is the 1st step. It is okay to 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, to enable you to get out of debt faster.