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
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