For many millennials, needs and wants may seem like the same thing but, in reality, there is a very fine line between the two. Transgressing it may cost you a lot of money and you may even end up broke later in your life. Saving money and investing it is undoubtedly essential and drawing a line between wants and needs will help you here.
According to a recent research, millions of Brits are still financially illiterate. This makes it more essential than ever to differentiate between our wants and needs. Here is how the differentiation between the two will enable you to save money.
What is ‘Want’ and ‘Need’ By The Way?
It’s fairly easy to differentiate between the two. A need is something that is essential for your living. Things such as groceries, clothes and car are categorized as a need. On the contrary, a want is something that you can easily live without and is not essential in your daily life. Clothes are something we all need, but designer clothes is something many want despite the fact that unbranded clothing can very well do the same job at a lower price.
You’ll be conscious when shopping
You’ll save money by differentiating between your wants and needs by becoming a conscious shopper. You won’t just blow your money on any item that looks attractive on the shelves of the store, rather you will continuously evaluate those items and only put it in your shopping cart if they truly are necessary. This kind of mindset will save your hard earned money.
You will Take Budgeting Much More Seriously
If you are able to differentiate between the two then there is a high chance that you will develop a habit of making a budget for every month and stick to it. This budget will help you to refrain from unnecessary expenses and thus you’ll save some of your pounds.
You will Probably Become a Thrifty Person
Mind you we didn’t say a miser. A thrifty person is one who spends his money carefully and not wastefully. When you are successful in drawing a line between your needs and wants then you will probably think twice before buying a material item. This isn’t bad rather it is a quality that we believe every Brit should possess.
You won’t be fooled by a marketer anymore
Ads, commercials, billboards all trying to pitch you to buy a certain product would be of no use if you know what your true needs are. The marketing tactics won’t work on you and you will be able to save yourself and your money from spending it crazily.
So now, if we’ve convinced you that both needs and wants are not the same then it’s time that you keep it in mind when you go shopping or when you spend your money online. This will be beneficial for you in the long run as you will be able to save more money for bigger things that matter such as retirement plans and child education.