{"id":2114,"date":"2019-02-15T18:16:59","date_gmt":"2019-02-15T18:16:59","guid":{"rendered":"https:\/\/www.managingmymoney.com\/?p=2114"},"modified":"2019-02-15T18:21:37","modified_gmt":"2019-02-15T18:21:37","slug":"how-to-tell-wants-vs-needs-demystified","status":"publish","type":"post","link":"https:\/\/www.managingmymoney.com\/manage-money\/how-to-tell-wants-vs-needs-demystified\/","title":{"rendered":"How To Tell Wants vs Needs Demystified"},"content":{"rendered":"\n<div>\n<div>\n<p>Making the distinction between wants vs needs isn\u2019t always easy, but it is necessary to manage your finances. Do you know how to tell the difference between a want&nbsp;and a need? Getting a handle on your spending will help you <a href=\"\/manage-money\/living-within-your-means\/\">live within your means<\/a>.&nbsp;And if your&#8217;re very ambitious, you may get to where you&#8217;re <a href=\"\/manage-money\/how-to-live-below-your-means\/\">living below your means<\/a>.<\/p>\n<p>I can help you identify necessary expenses from nonessential costs to help you make the most of your money and live comfortably on your budget. Learning how to tell the difference between wants and needs and understanding how to budget for both types of expenses can help you build your wealth and live your best life.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Definition_of_Needs_and_Wants\"><\/span>Definition of Needs and Wants<span class=\"ez-toc-section-end\"><\/span><\/h2><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-662cb88b208ed\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #3d3d3d;color:#3d3d3d\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #3d3d3d;color:#3d3d3d\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-662cb88b208ed\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.managingmymoney.com\/manage-money\/how-to-tell-wants-vs-needs-demystified\/#Definition_of_Needs_and_Wants\" title=\"Definition of Needs and Wants\">Definition of Needs and Wants<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.managingmymoney.com\/manage-money\/how-to-tell-wants-vs-needs-demystified\/#Telling_the_Difference_Between_Wants_Vs_Needs\" title=\"Telling the Difference Between Wants Vs Needs\">Telling the Difference Between Wants Vs Needs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.managingmymoney.com\/manage-money\/how-to-tell-wants-vs-needs-demystified\/#Appreciate_What_You_Have\" title=\"Appreciate What You Have\">Appreciate What You Have<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.managingmymoney.com\/manage-money\/how-to-tell-wants-vs-needs-demystified\/#Dont_Let_Your_Want_Turn_Into_Need\" title=\"Don\u2019t Let Your Want Turn Into Need\">Don\u2019t Let Your Want Turn Into Need<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.managingmymoney.com\/manage-money\/how-to-tell-wants-vs-needs-demystified\/#Think_Before_You_Buy\" title=\"Think Before You Buy\">Think Before You Buy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.managingmymoney.com\/manage-money\/how-to-tell-wants-vs-needs-demystified\/#Evaluate_What_Your_Current_Spending_Habits\" title=\"Evaluate What Your Current Spending Habits\">Evaluate What Your Current Spending Habits<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.managingmymoney.com\/manage-money\/how-to-tell-wants-vs-needs-demystified\/#Everything_in_Moderation\" title=\"Everything in Moderation\">Everything in Moderation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.managingmymoney.com\/manage-money\/how-to-tell-wants-vs-needs-demystified\/#Prioritization_System_of_Your_Needs_and_Wants\" title=\"Prioritization System of Your Needs and Wants\">Prioritization System of Your Needs and Wants<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.managingmymoney.com\/manage-money\/how-to-tell-wants-vs-needs-demystified\/#Low_Want_and_Low_Need\" title=\"Low Want and Low Need\">Low Want and Low Need<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.managingmymoney.com\/manage-money\/how-to-tell-wants-vs-needs-demystified\/#Low_Want_and_High_Need\" title=\"Low Want and High Need\">Low Want and High Need<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.managingmymoney.com\/manage-money\/how-to-tell-wants-vs-needs-demystified\/#High_Want_and_Low_Need\" title=\"High Want and Low Need\">High Want and Low Need<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.managingmymoney.com\/manage-money\/how-to-tell-wants-vs-needs-demystified\/#High_Want_and_High_Need\" title=\"High Want and High Need\">High Want and High Need<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.managingmymoney.com\/manage-money\/how-to-tell-wants-vs-needs-demystified\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>Needs and wants mean very different things, although sometimes these words are used interchangeably. Needs are essential expenses that are necessary for you to live and work. Housing, food, clothing, transportation and insurance are all examples of needs.<\/p>\n<p>Wants are non-essential expenses that are nice to have. Vacations, entertainment, eating out and luxury items are examples of wants. These are all items that make your life more fun and enjoyable but are not mandatory in order to survive.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Telling_the_Difference_Between_Wants_Vs_Needs\"><\/span>Telling the Difference Between Wants Vs Needs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure><picture><source srcset=\"https:\/\/www.managingmymoney.com\/wp-content\/uploads\/2019\/02\/7658-7658-How-To-Tell-Wants-vs-Needs-Demystified.webp \"  type=\"image\/webp\"><img src=\"https:\/\/www.managingmymoney.com\/wp-content\/uploads\/2019\/02\/7658-7658-How-To-Tell-Wants-vs-Needs-Demystified.jpg\" width=\"1200\" class=\" sp-no-webp\" alt=\"How_To_Tell_Wants_vs_Needs_Demystified\" decoding=\"async\" style=\"margin: 15px;\"  > <\/picture><\/figure><p><\/p>\n<p>&nbsp;<\/p>\n<p>Sometimes the line between wants and needs can be hard to define. Clothing is a need and you definitely must have clothing to protect yourself from the elements and be a productive member of society. While clothing, in general, is a need, expensive designer clothing is not mandatory and falls under the distinction of want instead of need.<\/p>\n<p>To further complicate matters, in some instances expensive, designer clothing may be considered a need. In certain professions it may be expected and even required for individuals to be well dressed. In this instance, expensive clothing for work and related functions is in fact a need, but this is a rare exception.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Appreciate_What_You_Have\"><\/span>Appreciate What You Have<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Realizing your Netflix subscription or afternoon latte are wants and not truly needs can be eye-opening. Looking at all of the things you want that you cannot afford can be depressing and cause you to question if it\u2019s really worth sticking to your budget. The short answer is yes.<\/p>\n<p>Learning to appreciate what you have can help you gain perspective. You may want nicer things, but there are plenty of people who would love to have the things you can afford. It is important to understand that keeping to your budget now will enable you to maintain and grow your wealth in the future.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Dont_Let_Your_Want_Turn_Into_Need\"><\/span>Don\u2019t Let Your Want Turn Into Need<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure><picture><source srcset=\"https:\/\/www.managingmymoney.com\/wp-content\/uploads\/2019\/02\/7658-7658-Turning-Need-Into-A-Want.webp \"  type=\"image\/webp\"><img src=\"https:\/\/www.managingmymoney.com\/wp-content\/uploads\/2019\/02\/7658-7658-Turning-Need-Into-A-Want.jpg\" width=\"1200\" class=\" sp-no-webp\" alt=\"Turning_Need_Into_A_Want\" decoding=\"async\" style=\"margin: 15px;\"  > <\/picture><\/figure><p><\/p>\n<p>&nbsp;<\/p>\n<p>It is far to easy for most people to talk themselves into thinking a want is really a need. You may think TV is necessary and completely a need, whether you use cable, satellite or another type of service. This is not the case, and TV is a want.<\/p>\n<p>Failing to properly identify wants can end up being a costly mistake. That\u2019s not to say you should go without TV, but you can find alternate ways to keep this want within your budget. You can downgrade your service package or cut other expenses that are not as important to you, in order to finance your TV service.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Think_Before_You_Buy\"><\/span>Think Before You Buy<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Before making a purchase ask yourself if the item is something you need or something you want. Even if the answer is obvious, just asking the question will make you think about how the purchase will impact your budget. Getting into this habit ensures you are always aware of how you are spending your money.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Evaluate_What_Your_Current_Spending_Habits\"><\/span>Evaluate What Your Current Spending Habits<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Look at your current spending to figure out how you are using your money. A good guide for establishing a budget is using the 50\/30\/20 rule. This means 50 percent of your monthly income is spent on needs, like housing, groceries and so forth, 30 percent is spent on wants, like going out and the remaining 20 percent goes into savings or paying off debt.<\/p>\n<p>These percentages can be fine-tuned to best fit your specific circumstances, but this is a good starting point for addressing wants vs needs in your budget. Tracking your expenses helps you understand how you are spending your money and enables you to look for ways to be savvier in your choices.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Everything_in_Moderation\"><\/span>Everything in Moderation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>There is a place in your budget for items and services that fall squarely in the want category. Dedicating a portion of your budget to your wants enables you to enjoy things you like while still building your wealth. Allowing vacations, expensive clothing, eating out and other non-essential expenses to overwhelm your budget can impact your long-term financial health.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Prioritization_System_of_Your_Needs_and_Wants\"><\/span>Prioritization System of Your Needs and Wants<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Looking at things solely in terms of wants vs needs can help you make some purchasing decisions, but things are not always that easy to define. Try to assign both a want and need value to purchases to help you gain a better understanding of the actual value of the product or service. Looking at your purchases in terms of high or low want and high or low need can help you better understand how to incorporate items into your budget.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Low_Want_and_Low_Need\"><\/span>Low Want and Low Need<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Items that you do not want and do not need are easy to pass up. These are products and services that just do not appeal to you in any way and would end up being a complete waste of money.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Low_Want_and_High_Need\"><\/span>Low Want and High Need<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>It can be incredibly tempting to pass on low want and high need expenses, but this decision can be a mistake. A great example would be insurance. You probably don\u2019t want to read the paperwork and figure out the right coverage, but failure to do so could end up in costly bills.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"High_Want_and_Low_Need\"><\/span>High Want and Low Need<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The opposite end of the spectrum, which is equally challenging, is high want and low need. This is where it can be easy to lose sight of your spending and purchase things you certainly do not need. You can purchase items you want but do not need, but this is where it is important to stick to your budget.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"High_Want_and_High_Need\"><\/span>High Want and High Need<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Anything that earns the high want and high need distinction is a good investment. These are items you need to order to live and work, but also things you want to have in your life. High want and high need is the ideal circumstances in terms of making purchasing decisions.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Understanding how the things you want and the things you need impact your budget can help you make better decisions about your personal wealth and impact your overall happiness. Before making a purchase consider these questions:<\/p>\n<ul style=\"list-style-type: disc;\">\n<li>Do I want this item?<\/li>\n<li>Do I need this item?<\/li>\n<li>How does this item fit into my budget?<\/li>\n<\/ul>\n<p>Do you have questions about how to tell the difference between wants vs needs? Reach out in the comments and I\u2019ll get back to you!<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Making the distinction between wants vs needs isn\u2019t always easy, but it is necessary to manage your finances. Do you know how to tell the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2269,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_seopress_titles_title":"How To Tell Wants vs Needs Demystified","_seopress_titles_desc":"Choosing a want or a need sounds as simple as black and white. But when you&#039;re standing in a store ready to buy something, you discover lots of gray areas! We can help.","_seopress_robots_index":"","_uag_custom_page_level_css":"","site-sidebar-layout":"default","site-content-layout":"default","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[4],"tags":[16],"uagb_featured_image_src":{"full":["https:\/\/www.managingmymoney.com\/wp-content\/uploads\/2019\/02\/7658-7658-Wants-vs-Needs.jpg",640,457,false],"thumbnail":["https:\/\/www.managingmymoney.com\/wp-content\/uploads\/2019\/02\/7658-7658-Wants-vs-Needs-150x150.jpg",150,150,true],"medium":["https:\/\/www.managingmymoney.com\/wp-content\/uploads\/2019\/02\/7658-7658-Wants-vs-Needs-300x214.jpg",300,214,true],"medium_large":["https:\/\/www.managingmymoney.com\/wp-content\/uploads\/2019\/02\/7658-7658-Wants-vs-Needs.jpg",640,457,false],"large":["https:\/\/www.managingmymoney.com\/wp-content\/uploads\/2019\/02\/7658-7658-Wants-vs-Needs.jpg",640,457,false],"1536x1536":["https:\/\/www.managingmymoney.com\/wp-content\/uploads\/2019\/02\/7658-7658-Wants-vs-Needs.jpg",640,457,false],"2048x2048":["https:\/\/www.managingmymoney.com\/wp-content\/uploads\/2019\/02\/7658-7658-Wants-vs-Needs.jpg",640,457,false]},"uagb_author_info":{"display_name":"Rick","author_link":"https:\/\/www.managingmymoney.com\/author\/rick\/"},"uagb_comment_info":2,"uagb_excerpt":"Making the distinction between wants vs needs isn\u2019t always easy, but it is necessary to manage your finances. Do you know how to tell the [&hellip;]","_links":{"self":[{"href":"https:\/\/www.managingmymoney.com\/wp-json\/wp\/v2\/posts\/2114"}],"collection":[{"href":"https:\/\/www.managingmymoney.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.managingmymoney.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.managingmymoney.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.managingmymoney.com\/wp-json\/wp\/v2\/comments?post=2114"}],"version-history":[{"count":0,"href":"https:\/\/www.managingmymoney.com\/wp-json\/wp\/v2\/posts\/2114\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.managingmymoney.com\/wp-json\/wp\/v2\/media\/2269"}],"wp:attachment":[{"href":"https:\/\/www.managingmymoney.com\/wp-json\/wp\/v2\/media?parent=2114"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.managingmymoney.com\/wp-json\/wp\/v2\/categories?post=2114"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.managingmymoney.com\/wp-json\/wp\/v2\/tags?post=2114"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}