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In order to gain control of spending habits, it’s necessary to prioritize the difference between needs and wants. Successful savers often utilize this knowledge to save for emergency funds, house loans and wise investments. Here is some knowledge which could help someone understand wants and needs when contemplating making a purchase.

 

What is a Want?

A person wants something for superficial reasons which makes the thing nonessential. For example, someone could want a piece of chocolate from the candy store but they don’t need it. Expensive jewellery isn’t a requirement to go with any outfit but someone could want it for its rare qualities. A person may want to travel to Paris, France to see the Eiffel Tower but they can live without it. According to Nerdwallet.com a want is something bought for fun or to live more comfortable than a person has to.

 

Examples:

  • High heels, leather jacket or a baseball cap
  • Dog toys for a pet when he already has a large pile he plays with
  • Leaving extra lamps turned on at home and utilizing electricity when leaving one lit is sufficient for survival

 

What is a Need?

Wisebread.com states that a need is essential to a person’s survival. For example, people aren’t able to live without food or water. Money is a necessity for buying important things people use to live normal lives like a house to live in or a car to drive. A car needs gas to get around. A person may need to visit a doctor, take possibly dangerous medications or have a surgical procedure for a serious illness but will probably not want to. No one can be healthy or survive without something they need.

 

Examples:

  • Health and auto insurance
  • Clothing and heat for warmth
  • Shoes to walk in
  • Veterinarian biils and pet food

If someone is trying to save money they should spend it on what they need first. After this, they should buy what they want as long as it’s within reasonable spending limits. Learning to spend money responsibly should aid someone in reaching their savings goals.