Part of setting your budget is determining how much money you have and where it should go. And with this comes the important task of figuring out what you need verses what you want. Too many times people will set their bars really high to allow for those “extra” things that they think they need. The may put a little bit more in their food budget for those convenient snacks, or maybe a little more in the entertainment budget for those extra few drinks. But for those serious about getting out of debt, there is a lesson to be learned here. The more money you save on your wants, the more money you have to pay off your debts, and the sooner you will be debt-free.
Still trying to determine the difference? Check out what Sarah Winfrey had to say over at Wise Bread:
“But Mo-om, I want it!” How many times have you heard that in the grocery store, or the toy store, or anywhere else, for that matter? Probably more than you can count. And what do you think when you hear it? That poor parent? Or, thank God that’s not me anymore! Or, What is wrong with that child? Most of us go on our way, relieved for some reason. It’s not our kid, it’s not us, and we don’t have to deal with it.
I must admit that I am plagued with scenario every time I pass the toy section in the store with my kids. They wine and complain that they want a toy and will try to give me a valid reason for it. The answer remains the same - No. But then again, maybe I should sit back and think about my purchases, and wonder if I do the same thing. Do I try to give myself a valid reason for purchasing something just because I see it on the shelf? Keep reading:
The truth is that, as adults, there are times when we keep ourselves from throwing these sorts of tantrums by buying something we don’t need. We see an item, feel the same desperate need that child felt, and assuage our own feelings by buying the item. We have the power to do that for ourselves as adults. But these are the purchase we often feel guilty about, and one of the main ways to get rid of the guilt is to find a way to classify that purchase as something we do need. Actually, we can do this any time we regret a purchase.
So it’s time for all of us (and I include myself in this) to grow up, time to stop looking like adults on the outside but acting like children on the inside. To do this, we must learn to distinguish between what we need, what we need in certain conditions, and what we want.
Find out how to group your needs and your wants accordingly - read more of her blog here.
Also, you can share your ups and downs, ins and outs of budgeting with other users in the group It’s Time To Budget by joining in on our conversation here.
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