Today, I want to start talking about your spending habits, and your priorities around spending. Particularly, let’s looks at your needs and your wants.
It all changes over time. What I want now and what I used to want 10 years ago are very different. My needs probably haven’t changed so much. We’ll always have to spend money on our needs, like food, housing, and fuel. We can certainly look at ways of being more efficient in our spending. Look out for bulk discounts and deals. Find cheaper ways of doing things. Our needs are always going to be there, but we can try to minimize them as much as we can.
Our wants, on the other hand, are going to change based on our life priorities and our financial goals. In the previous post, I had linked to an expense transaction list. Check it out if you haven’t yet. By following that process, you’ll identify your needs and wants. From there, start to look at how you can reduce the costs of your needs, and prioritize your wants. Which of your wants are actually important to you? Do they provide you with value?
Let me know in the comments: What’s something you’ve been able to reduce in your needs? What’s a tip or trick you’ve learnt to do so?