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The
Difference Between Wants and Needs
by Jeffrey
Strain
So you want to become wealthy?
While there is no single road to getting there,
it's a sure bet that one principle is in place
for those who keep their wealth over a lifetime.
Live beneath your means. Spend less than you
make. Don't spend more than you can afford. It
doesn't come any simpler than this. If you want
to create wealth, you have to learn to do this.
It doesn't matter if you make $10,000 a year or
$1 million, if you don't learn how to master the
step of spending less than you earn, you'll
never create lasting wealth.
While the concept is simple, chances are you are
not following it. In all likelihood, you are
living paycheck to paycheck, treading water. No
matter how hard you try, you never seem to get
ahead. Even when the raises come, the money
still disappears just as fast. If this sounds
like your situation, you probably have not
mastered the difference between needs and wants.
First, it's important to realize that wants and
needs are not the same. When you read that
sentence, you probably said to yourself, "Of
course, everyone knows that." Again, while
everyone may know this intellectually, it is a
good bet that you aren't completely honest with
yourself when it comes to the things you
purchase.
How many times have you heard (or for that
matter said yourself) "I absolutely need (fill
in the blank)" when in reality the meaning was
"I really want (fill in the blank)?" I can't
live without those shoes...I will die if I can't
have that ring...I simply have to have that
car...the list can go on and on. Please don't
get me wrong. These are phrases that we all use.
That is why it is important to step back and
remember that wants and needs are not the same.
It's important at this point to make clear that
taking the time to critically look at your
current lifestyle and what are the true needs
versus those things that are convenient wants
will go a long way in saving you money and
enabling you to spend less than you make. Let's
take an example of your TV. Is your TV a need or
a want? Although I can hear the arguments
already rationalizing why a TV is a necessary
part of your life, the truth is that it is more
than likely a want. In most cases, it is
probably an affordable want (The exception may
be if you decided you had to have that 50 inch
state of the art plasma television with the
price tag of a small car). The question is
whether the digital cable TV, 6 premium
channels, satellite dish, the on demand movies,
the DVD player with movie selection, etc are all
also affordable wants?
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