Wants vs Needs
The problem with wants
- They do bring excitement but do not bring lasting happiness
- It becomes a unquenchable thirst of spending – there is no end it just manifests
Life is real simple but we choose to make it complicated and one of the biggest complicating factors is our desire to satisfy wants before needs, this flips the Maslow Hierarchy of needs upside down.
Should you pursue wants – yes but choose long-term long lasting wants, wants to do not continually erode your long-term wealth, avoid wants that might become unsustainable.
Early financial impendence is without question a want that I have spent a great deal of money on, but when I am retired some of that money will transition into stratifying survival needs.
Identifying a want vs need:
- Requires justification
- Exceeds its function utility
- Where would this appear in your budget
- You have buyer’s remorse
- You buy on credit
How to control your wants:
- Have a documented budget – have financial goals that lead to long-term wealth building
- Be an adult – children focus on their wants adults focus on their needs
- Adopt a life changing philosophy such as minimalism – one in one out
- Focus – go ten feet deep rather than 10 feet wide
- Practice gratitude – value the things you do have (we are solving 1st world problems)