Monday, March 10, 2008

Needs vs. Wants

Saving money is basically about willpower. In today's society where you can get pretty much anything on credit, most people have no discipline when it comes to spending money or saving money. If you want to get ahead, you have to save. And there is no time like the present.

Ask yourself before you buy: "Do I really need this, or do I want it?" Most times, you would be surprised that the answer would be want. We all have different life circumstances which determine needs and wants for our own families, but if you are serious about saving money you will start to ask this question to yourself more and follow it.

Remember last month when I went for one month without spending money (except on gasoline and groceries)? I ended up saving 79% on my grocery bill compared to the month before, and 24% on gasoline compared to the month before. We also saved 50% more than the previous month! We were so focused on saving that we did well in all areas, not just the extras. It felt so good to not spend. To not be out shopping. To not worry about all the latest deals. Don't get me wrong, I love deals, but I can't get them all. It takes too much time and even too much money. Do I really need it? NO. There will always be more deals.

I challenge you this week to think more carefully about your purchases that you make, large or small. Is that $10 item something you really need? Or is that $10 money you can put away? Every dollar makes a difference! It is difficult. That month was very hard for me. But as time went on it gradually became easier until by the end of the month it was becoming a habit.

What are some challenges for you when it comes to saving vs. spending?

No comments:

Related Posts with Thumbnails