Needs vs Wants
Understanding needs vs wants is the foundation of smart spending.
The Critical Difference
Needs are essentials for survival:
- Food (groceries, not restaurants)
- Shelter (rent/mortgage)
- Basic clothing
- Healthcare
- Transportation to work
Wants enhance life quality but aren't vital:
- Eating out, branded clothes, latest gadgets, entertainment subscriptions
💡 The 24-Hour Rule
Want to buy something? Wait 24 hours. If you still want it AND can afford it, then buy.
Common Traps
- "I NEED the new iPhone" → Any phone works (Want!)
- "I NEED this sale item" → Impulse, not necessity
- "I NEED a car" → Context matters (No public transport? Need. Otherwise? Want)
Make Better Decisions
Before every purchase ask:
- Is this a need or want?
- Can I afford it without debt?
- Does it align with my financial goals?
Test Your Knowledge
Question 1 of 3
1. Which is a need?
💡 Key Takeaway: Needs vs Wants is a crucial concept for financial success!
Key Takeaway: Understanding Needs vs Wants is essential for making informed financial decisions.