Identifying needs vs. wants To save money and live on a budget,
it helps to really understand the difference between needs and
wants. And you probably do understand that, say, food is a need
and a latte is a want. But some mornings, after cramming all
night for a test or working late, a latte is sure to feel like a
need. Maybe coffee is a need but gourmet coffee drinks are a
want. Maybe a cell phone is a need for personal safety but
custom ringtones are almost assuredly a want. When creating a
spending plan and trying to live with limited funds, it's
helpful to really consider what is a need and what is a want.
What you define as needs and wants does not have to remain
static. For example, having an MP3 player could generally be
defined as a want. But if you find that your roommates or noise
in the library is too distracting for you to study, you might
need background music to block out the other sounds. Use the
Needs vs. Wants Worksheet to write down some of your needs and
wants-and then look carefully at wh