by Deborah Cummings

Created on: May 26, 2008   Last Updated: June 10, 2008

How to Know If You Need It or Want It

When passing by the electronics department of your favorite store you spot the television of your dreams. Look at that picture. It is so awesome that you can just see it sitting in your living room. Dreaming of how great football season will be with this magnificent big screen television to watch your favorite teams is the only thing you see at this moment. Suddenly you are stopped short in your tracks.

Reality starts sneaking in those little messages that you have tried for years to turn off. The voice that you have come to dread starts speaking in your ear. "The house payment is due next week." "What about the new tires that are rapidly becoming a necessity?" "A spare is a spare, not a replacement tire." Oh, how you wish that voice would just go away and leave you alone.

Many people face this common problem on a daily basis. Need versus want. If you will notice, even your children have developed the need word rather than the want word. They no longer say, "I want this X-Box." It has transformed to "I need this X-Box."

When deciding whether something is in your budget or it is not, the only way you can be sure is to have a budget in the first place. Saving for retirement may be the last thing on your mind because you really do want that big screen television. However, according to Yahoo Finance's How-To Guide on Retirement, authorities on this subject say that retirees will need anywhere from 60% to 100% of the income they are receiving now for each year of their retirement.

The best way to determine is the purchase you are about to make is actually a need is to ask yourself this question. Can you live without it? If the truthful answer is yes, your need is not a need. The tires that you do not want to think about when the television is on your mind are really a need. If you do not have reliable transportation to work, you will have no income, no food, no house, and no electricity for the big screen.

Studies have shown that the American consumer is relying on credit cards for purchases more than ever before. Currently a study is being conducted by Ohio State University to track how Americans are preparing for the retirement years. This study is designed to inform us of three things. How the consumer behaves, a way of predicting how the economy is going to go, and if consumers are financially healthy.

Financial problems are on the increase when it comes to many companies' pension plans, not to mention that Social Security has

• 1
• 2
• Next Page >>