We’ve all fallen for it at some point—saying we absolutely need something when it’s really more of a want.  Being honest with yourself about the difference between what you need and what you simply want can actually save you money.  If you pay attention to your needs, then at some point, you’ll be able to reward yourself with something you want.

I’ll even use myself as an example.  I recently decided I needed some new clothes.  In all reality, I really do; a lot of my clothes don’t fit me anymore since slimming down, and others are just worn out.  But can I get by on what I currently have?  Absolutely.  There are some clothes I can have tailored rather than buying a new, smaller size, and the rest can function just fine for now.  For me, making sure I can afford my car payment, afford groceries, etc., is most important.  I can go shopping later after I’ve saved some extra money.  (And even then, I’m looking for sales!)

Your needs and wants will be entirely different from mine, so it’s important to evaluate your specific details closely.  Maybe, by chance, you’re a model and it’s important to your career that you stay on top of the latest fashions.  Maybe you live in an area where you can walk everywhere and don’t need a car; then making a car payment wouldn’t be a necessity for you.

Ask yourself some questions to narrow down the difference.  What would you truly be suffering without?  Will whatever you’re considering buying help pay your bills, advance your career, or put food on the table?  For example, do you really need a new computer or will your old one suffice?  If you work in the IT field, or as a graphic designer, or someone else who needs to stay current on technology for your career, you should probably invest in the new computer.  If you’re just looking to play the latest videogames, this is a want for you, not a need, and you might want to hold off until you have extra money to use.

All of us need to cover basic life necessities.  We need food, shelter, and love.  You need to stay on top of your bill payments to ensure you’ll have a roof over your head, and you need to put the kibosh on spending to make sure you have money to buy food.  And it goes without saying—but I’m going to say it anyway—you shouldn’t have to buy love.  Go ahead and create a list of the things you need in order to meet those life necessities.  If you’re iffy about anything, you just might be able to get by without it.

It’s important to go through life happy, and meeting your needs is the first step.  Once you’re comfortably at that point, then you can buy the things you’ve been wanting.  Money should first be used to cover your needs, and it can buy the rest of your happiness after that…but that’s another story.