How much money do you honestly believe that companies are spending on advertising every single year? Sadly, the answer is more than one hundred and fifty billion dollars every single year. The purpose behind all of this spending is to create desire, making us want products and other things that we do not actually need.
Needs
For many people, the concept of distinguishing between your wants and your needs is capable of becoming problematic when it comes time to budget for the household. Restaurants may offer food, but that does not make them the best option for eating, especially when you consider that you can just as easily eat at home. This same concept holds true for many other types of needs as well, including clothing for example. Why shop with the high end designers and brand names when there are so many more cost effective alternatives that are available to meet your basic clothing needs?
Your budget should definitely have line items for food, housing, clothing, utilities and the other essentials. These are the things that make up your basic needs for survival. Are cheaper alternatives available for any of these needs? Can you find a cheaper house or apartment? Can you find ways to lower your electric bill or cut down on how much food you purchase? In every category of needs you should be able to find ways to save yourself money. Now let us look at your wants.
Wants
Our wants are a subject that is much trickier to understand and deal with. By definition, wants are things that we would like to own or have, but that we could actually live without having. Many people want to own a cell phone for example, but how many people actually need to have one? As much as we may not like to admit it, many electronic gadgets such as cell phones are wants and largely meant to be convenient rather than vitally important in our lives. They may be capable of making life easier but that is not the point behind them. There are costs associated with these gadgets - Can your budget handle those costs?
Keep in mind that we are primarily speaking about people dealing with debt management and household budget issues. If you have money left over after you budget, then purchasing things that you want is not going to be as large of a problem. However, make sure that you are utilizing that money as effectively as possible for the best results.
You need to take a hard look at the personal wants and needs in your life, and address your needs first by budgeting for them first. Next, you should make sure that you are paying your debt down. You may consider setting some cash aside in a bank account for a rainy day or emergency. Finally, whatever extra money that you still have can be applied to buying want items.
Photo Credits: Dolinski
Originally posted 2009-09-28 03:21:07. Republished by Blog Post Promoter
Related Posts -
Calculating Your Net Worth Your own personal net worth is something that can serve as a truly useful tool in measuring the financial progress that you have made from one year to the next. What your net worth is, is essentially just a grand total of all of your assets, with liabilities subtracted. There...... -
How to Find Financial Stability in Unstable Markets Right now, the only news about the economy seems to be bad news, and it may take a few months if not years to improve. The dollar is weak, oil prices are still up and the cost of living has skyrocketed this year. These are unstable times, but that doesn’t...... -
9 Warning Signs That You Have TOO MUCH Debt! When it comes to accruing debt, it is really and truly tough for people to face the cold hard fact that they are in way over their head. It's much easier for you to turn things around when you are aware of what the signs are for too much debt,...... -
How to Keep Finances Growing No matter how much money you make, for many people, it's never quite enough. In order to get ahead, you'll need to find a way to keep your finances growing. There are many different ways that you can grow your income, both actively and passively, and over time, these small...... -
It's Time for Some Personal Budget Planning Tips Personal budget planning is an important part of keeping a handle on your finances. Because there is so much turmoil in today's economy, maintaining a healthy personal budget is more vital than ever. Crafting a personal budget begins with determining how money comes in, and how money goes out, but......
Related Websites -
The Most Important Part Is Starting: Debt Recovery I was recently chatting with a friend of mine about finance when she stopped me and asked, "What is APR? I have a good chunk of credit card debt and don't even know how to get started repaying it." This brought to mind an interesting thought. How many people...... -
Why Does Everyone Hate on Financial Planners? Defending Financial Advisors Almost every personal finance blog out there (even the best of the best on my blogroll) hates on financial planners, financial advisors, investment advisors, etc., but I donât understand all the expressed hatred. A financial advisor could be very useful for those that need help, despite all the negative information out there. ...... -
Festive Link Love Carnivality #22 Is it me or did August only take a week to go by? Seriously! How is it back to school time already? I'll miss you Summer... Moving on... I'm back in the carnivals this week. Here are the ones I participated in: Carnival of Personal Finance #167 - Highlights...... -
Sometimes 401(k)s are Better than IRAs I get really annoyed when people quote any talking heads without taking into account oneâs personal situation. I am not sure why, but I canât stand blind faith in anyone except maybe your version of a Creator. A LOT of personal finance bloggers, Talk Show Hosts, and house wives all...... -
12 Step Program: Shopping Addiction? At the risk of sounding melodramatic, shopping addiction operates the same way as heroin addiction. Sure, the consequences are different, but how the two items interact with your brain is similar. With heroin, the consequences are financial ruin, shattered familial relationships, depression, and ultimately, severe medical problems or death. With......
- Personal, Field Gear Original Items Current Militaria 2001-Now Militaria Collectibles
- Online Discount Home Store
- Personal, Field Gear Original Period Items Vietnam 1961-75 Militaria Collectibles
- Household Advertising Collectibles
Categories:
Budget, Money, Personal Finance, finance
Tags:


0 comments ↓
There are no comments yet...Kick things off by filling out the form below.
Leave a Comment