Wants Versus Needs

We all WANT different things, big homes, fancy cars, whatever it may be….but do we really NEED this stuff?  When it comes to sticking to your budget, it’s so important to really think about this question.   It’s really worth repeating over and over…do I really NEED this?

If you are going to be successful long-term you need to really think about every purchase and decide if it’s something that you absolutely need.  I remind myself of this all the time.  Do I really need a new big screen TV?  Well, the truth is in this case, I definitely don’t need a new TV.  It’s killing me too, especially with the Super Bowl right around the corner!  But again, I just had to take a look at my budget and just realize that it’s not a smart move right now.

Every year I look around the office at work and notice how many people continue to buy new cars every couple of years.  It’s amazing how far in the hole a new car can put you.  Obviously we all really should have reliable cars, but to purchase a brand new car?  It’s really not a good move for your long-term financial goals.  In all reality, it’s so much better to go out and find a nice, clean, well-taken-care-of, used car.  It will save you thousands and thousands of dollars over the life of the loan, in most cases.  I just can’t stand the idea of paying a car loan for years, it’s just such a waste of money.

Remember, the goal here is long-term financial success.  When it comes to big purchases, you really need to think it through and understand whether or not you really NEED to make the purchase.  Staying on course with your investments and savings will get you ahead and keep you ahead.

So, next time you are looking to buy something really ask yourself if you absolutely need to make the purchase.  I realize we all have to have spend money on fun things or hobbies, just to keep our sanity sometimes, but when it comes to cutting corners on your budget you need to think it through.  This is especially true when you still have not established a financial cushion with your savings account.   This must be done first before you get to a point where you can start dropping cash on material things that you likely don’t need to have.

Stay focused on building wealth and forget about wasteful spending on things you really don’t need.  Once you get to a good comfort level, you will be able to pay cash for those things that you just can’t live without.  Just make sure it’s cash…no loans or credit cards!

 

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