In the current economic climate we all need to make cutbacks in our personal expenditure to ensure we are all a bit more financially secure. One of the easiest ways to save your money is to figure out what you need to spend money and make certain that there is always that amount of capital around to meet those payments. By balancing your wants against your needs you can make sure you’re never in trouble money wise when it comes to vital expenditure.
A need is an expenditure that has to be made to be able to carry on your day-to-day life:
Food is an essential need – without you your body wouldn’t be able to function stopping you from going about your daily routine and in the long run you would eventually die from a lack of food.
Shelter is another essential – you need a place to live to protect you from the elements and to ensure financial security. Without a fixed address it is almost impossible to be considered for a job, or any type of payday loan.
In addition to it being the law to cover up, clothes are also an essential that need to be paid for. No clothes and you are not protected from the elements which can lead to all sorts of disasters.
Your wants however, are simply things that you like, but don’t really need. For instance, although food is a need buying the most expensive labels as you prefer the taste is a want. If you’re struggling to make ends meet then the most responsible thing is to bite your tongue and lower your standards. If you like going for the high end food labels, cut back and buy supermarket brands that are a lot cheaper; if you have a contract phone look to downgrade the type of contract or the phone you use to get a cheaper deal; if you like to buy clothes from pricey fashion stores cut back and buy cheaper clothes.
You can of course make the occasional splurge as a treat, but if you can’t really afford items at the higher end of the market then you have to start living a lifestyle more suited to your bank balance.