The last blog talked, in passing, about needs and wants. Understanding the difference between them is one of the easiest and smartest ways to take control of your money. Once you get it right, saving and spending becomes a lot simpler.
What are needs?
Needs are things you must have to live! These are essentials; if you don’t have them, your health or daily life could be affected.
Examples of needs:
Food and water
Paying for somewhere to live – board/rent/mortgage
Heating
Clothing
Mobile phone
Furniture
Ways to get around – bike/car/bus etc.
Healthcare
What are wants?
Wants are nice to have—but you can live without them. They make life fun, but they aren’t necessary!
Examples of wants:
Eating out at restaurants
New clothes (when you already have enough)
Latest gadgets or phone upgrades
Streaming services
Fancy holidays
But needs can become wants if we are not careful!
So, some examples:
You need to eat, but want take-aways
You need a phone but want the latest iPhone
You need wheels but want flash wheels
You need clothes but want designer labels
You can add to this list
Why it matters
When you mix up wants and needs, you may:
Spend more than you earn
Struggle to save money
Feel stressed about bills.
But when you understand the difference, you can:
Make smarter choices
Save money
Reach financial goals faster.
A simple trick to stay on track
Before buying anything, ask yourself:
“Do I need this, or do I just want it right now?”
If it’s a want, try waiting 24 hours before buying. Often, the feeling passes—and your wallet thanks you!
Final tip
Balance is key. Cover your needs first, save a little, and then enjoy a few wants if you have money left. That’s controlling your money and not letting it control you!
And remember – we are here to help.
