by Karen Boyd

Created on: April 13, 2009   Last Updated: April 14, 2009

Buy What you Want, (and Need), for Less

Times are tough and money is tight, yet our needs, (and perhaps some "wants"), still exist - just as they did when our "belts were a little looser".

For sake of holding onto the cash required to pay our monthly mortgage or electricity bill, it is time to draw the line between what's considered needs and wants.

Generally, our basic needs are obvious - food, shelter, personal hygiene products, etc. These items, or expenses, are primary to everyday living, utilized and purchased often.

Wants, of course, are secondary to basic needs. Wants are not required for survival and are often planned for to fulfill long- term use and desires. Secondary wants include such luxuries as recreational items, events, collectible "knick knacks", etc.

Occasionally, however, the line between needs and wants becomes blurred or indecipherable. Our wants overlap into needs based on our lifestyles or what we're accustomed to having.

For example, a television set is not necessary for human existence, yet most households have two or more of these entertainment units that are a staple of everyday living. If the television set breaks, that want quickly transforms into a need based on the dependence and affinity we place on this "living box".

Yet, some items fit both categories of wants and needs; such as clothing. Clothing, on a primary level, is essential to human living as it covers our private areas, keeps us warm, and protects us from some elements. Clothing, on a secondary level, however, slides into the want category in terms of style, brand name, or quantity.

Instead of trying to sort and balance between needs and wants as they arise, institute some planning to control your spending habits and allow for needs and some wants to exist in your lifestyle.

PLANNING STRATEGY:

1. Devise a budget; grab your checkbook, bank statements, or billing receipts and itemize every expenditure (monthly average) from drugstore purchases to credit card payments. Compare this in relation to your monthly income. (You will find, once you've listed expenditures, most items fall clearly into needs or wants categories.)

2. Physically draw that line between needs and wants. Create a spreadsheet or matrix identifying and distinguishing purchases that are primary and secondary to everyday living. (Be honest and attempt to maintain objectivity during this process.)

3. Needs always take precedence. Keep this concept in the forefront of your mind as you seek methods to best plan for these

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