What is the difference between Needs & Wants?
What is the difference between Needs & Wants?
Things you need to survive and function
Examples
Food
Clothing
Housing/Utilities Expenses
Healthcare
Transportation ex. (cars, bus, metro expenses)
Something that makes your quality of life better and more enjoyable
Examples
Designer items
Vacations/traveling
Entertainment (going out, movies, arcades)
Hobbies
Why is this important?
Differentiating between needs and wants is important as it will allow you to determine whether or not you NEED to spend your money or need something, which will build good spending habits and help you have good financial health.
Can I still do both?
Yes! As long as you know your limits and don't spend more than you can afford it's fine. It's important to have a good mix of both so you can have the best quality of living.
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