The Money Glow

Have you ever walked into a store for one thing and walked out with a cart full of items you didn’t even plan to buy? Or maybe you’ve ordered something online just because it was on sale, only to realise later that you didn’t really need it? If so, you’re not alone! Understanding the difference between needs and wants is the key to smart spending and financial success.

Understanding Needs and Wants

A need is something essential for survival or well-being, such as food, shelter, clothing, healthcare, and transportation. Without these, life would be difficult or even impossible. On the other hand, a want is something that brings extra comfort or pleasure but isn’t necessary for survival—things like designer clothes, the latest smartphone, eating out frequently, or streaming subscriptions.

It’s not wrong to have wants—after all, life isn’t just about paying bills! The problem arises when we spend too much on wants at the expense of our needs or long-term financial goals.

Why Do We Overspend on Wants?

1. Impulse Buying – We often buy things without thinking, simply because they look appealing or are on sale.
2. Social Pressure – Seeing others with the latest gadgets, fashion trends, or luxury items can make us feel the need to keep up.
3. Emotional Spending – Shopping can be a way to cope with stress, sadness, or boredom.
4. Easy Access to Credit – Credit cards and buy-now-pay-later options make it easy to buy things we can’t afford.
5. Marketing Tricks – Retailers use discounts, limited-time offers, and “must-have” advertising to make us feel like we need things that are actually wants.

How to Control Unnecessary Spending

1. Pause Before You Buy – Before making a purchase, ask yourself: Do I really need this? Can I live without it? If the answer is yes, walk away and think about it for a few days.
2. Create a Budget – Set a clear budget that prioritizes needs over wants. Allocate a specific amount for discretionary spending. Check out the previous post on “5 SIMPLE STEPS TO CREATE A BUDGET THAT WORKS” if you would like some inspiration.
3. Use the 50/30/20 Rule – Spend 50% of your income on needs, 30% on wants, and 20% on savings or paying off debt. You can read more on “50/30/20 BUDGETING MADE SIMPLE“.
4. Make a Shopping List – Whether online or in-store, stick to a list to avoid impulse buys.
5. Unsubscribe from Marketing Emails – Those “flash sales” and “exclusive deals” often trick you into buying things you don’t need.
6. Avoid Emotional Shopping – Instead of spending money when stressed, find other ways to relax like exercising, reading, or talking to a friend.
7. Use Cash Instead of Credit – Spending cash makes you more aware of how much you’re actually spending.
8. Set Financial Goals – When you have clear savings goals (like buying a house, traveling, or retirement), it’s easier to say no to unnecessary purchases.

The Reward of Smart Spending

When you learn to control unnecessary spending, you’ll find yourself with more money for things that truly matter. You’ll experience less financial stress, have more savings, and even enjoy guilt-free spending on things you genuinely love. The key isn’t to completely cut out wants—it’s about making mindful decisions so that wants don’t take over your financial well-being.

So next time you’re about to buy something, take a moment to think: Is this a need or a want? Your wallet will thank you!