Wants vs Needs
Financial success is often hampered when people cannot draw a distinct line between their wants and their needs. We all need, water, food, clothing, shelter, transportation and medical care. Those are our basic needs for survival. Everything that you have beyond that is a want.
There is nothing wrong with wanting things to enhance your life as long as you can afford them. If you find you are buying designer clothes, the newest iPhone, a 60″ LCD television or dining out and putting it on a credit card you may want to evaluate your wants versus your needs again. If you are unable to pay off the balance of your credit card every month, your wants are costing you a great deal of money.
It is when people cannot draw the line between something they want and something they need that they may start getting into trouble with debt. This can sneak up on you slowly and before you know it your cards are maxed out and you are having problems making the payments.
Take some time and evaluate all of your purchases. If you are carrying a balance on your credit card and you are purchasing a want, you should reconsider.
Basic Financial Success Advice
I am going to share some very basic advice for financial success and will expand on them in the future.
- you only have 2 options for financial success, earn more or spend less
- live within your means
- know the difference between your needs and your wants
- don’t try and keep up with the other guy or girl
- delayed gratification will always prevail over instant gratification
- pay now or you will pay later and you will likely pay more later
Do you know any others?