Your Needs Vs Your Wants

YOUR NEEDS VS YOUR WANTS:

Many of the financial struggles we get involved in is as a result of our confusion between "Needs and Wants".
As you journey towards financial freedom, It is very important you are able to differentiate between your "needs" and "wants".

A need is something you can't live without e.g. Food,Clothing,Shelter, health care. A requirement for survival while A want is something you could do without, you strongly desire it but it's not essential for your survival e.g. Designer bags, shoes, going to movies etc. Kindly fill in ................. I am sure we can separate our needs from wants.

It takes a certain level of maturity to know what these needs are.
Have you ever been in a situation where you purchased a particular item and feel guilty after buying the item cause of the reality that such item is not really needed. I have been in such.

According to Karen McCall - A need sustains you and a want entertains you.

Most times when I go shopping and something grabs my attention & winks "buy me", I pause and ask myself is this a "NEED or a WANT"? It immediately helps me to focus on what I really need.

There are so many beautiful things out there calling your attention and screaming "buy me". Why not pause for a moment and look at those things critically.You must be able to decipher whether its a "NEED"or "WANT".
What do you really need in your life?

If you want to be financially successful, you must be financially disciplined. It's not everything you see you must buy.

You can treat yourself to some wants along the way, but do so when you can afford to, and enjoy those wants as the extras that they are

Develop the ability to delay short term gratification.

Be clear about your motives & intentions when you shop.
Make a detailed list of your needs/wants and review from time to time.
When you look at the "Needs" in your life, you tend to see that some things are not 'Needs" but "Wants". There are times when wants become needs.
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Prioritise and have a scale of preference of your "needs/wants".

Separating needs from wants helps to get spending under control.

Ensure your needs are met first before indulging yourself with some wants and set goals for both.

I am not saying you should give up on your "Wants" cause you might need to indulge yourself once in a while, but to examine how much of your monthly spending is on "Wants".

When you are being drained financially just to maintain a flamboyant status then it becomes a big issue.

When you are under financial pressure consistently, it shows you are putting a strain on your finances.

Some people's "Wants" is other people's "Needs", your focus should be more on your "Needs". .


Spend Wisely!

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Your money personality

How do you perceive money?

What are your money values?

What motivates your financial choices?

Do you have so much money and you can't stand the thought of spending it? Do you have trouble coming out of debt? Do you have issues squandering all your income and have no savings at the end of each month?

We all relate in different ways towards money depending on the level of influence we've had from our upbringing. How you relate to money will definitely affect your finances.

I was able to detect my money personality at an early stage in my work life and it has impacted my financial choices greatly.

Your money personality affects the way you handle money. Your awareness of your money personality is the first step in creating a positive change towards your finances.

If you can detect your money personality, you will be able to make better financial decisions.

Our money management habits can fit into 4 major personality types. I would like to share some excerpts from “Money personality types” by Olivia Mellan 

The 5 Money personality types:

1. Spenders - Believe money is meant to be spent. Sometimes they spend more money than they should or live above their means. They live in the spur of the moment. No wonder nothing is in their account at the end of the month. They wonder "where does it all go". Spenders values wants above needs. It may be difficult to put aside money for future financial goals.

2. Savers - Love to save money. They are careful about spending money; they believe you have to prepare for the future. They are organised with their finances. Conservative with where they chose to put their money, preferring a high interest savings account over investments such as mutual funds.

3. Money monk - They think that money is dirty and bad, and that if you have too much of it, it will corrupt you. They identify with people of modest means rather than those who amass wealth.

4. Amasser - If you tend to be a money amasser, you are happiest when you have large amounts of money at your disposal to spend, save and invest. If you are not doing any of these, you tend to feel empty. You tend to equate money with self worth and power, so a lack of money may lead to a feeling of depression or failure.

5. Avoider - If you tend to be a money avoider, you probably would have a hard time balancing your check book, paying your bills and leaving your financial obligations till the last minute. You may not even have a budget or keep financial records. You won't know how much you own, owe or spend.

Which money personality describes you? How can you use this awareness to build a stronger financial future?

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Money Basics

Money, Money, Money, one word that carries weight in our every day lives. Hardly can you go all day without talking about money or somebody talking about it. We are all economic agents cause we deal with money transactions. Money is an important resource in our daily lives.

The need for money cannot be over emphasised cause it's a medium of exchange for products/services offered. Every one, wants it, work for it, dream it. Like they say, money makes the world go round. I think it does. We all need it to put food on the table, pay children's school fees, go for vacation, household expenses.......we just can't shy away from our need for "money". 

Our wants are unlimited even though all cannot be satisfied at once but then we worry about paying bills, have a feeling of inadequacy over our income, feel guilty at spending. Polls frequently show money to be a leading source of worry, and one of the main causes of disputes between couples.

Money is a representation of Value

 It's really funny how even the rich aren't immune to this money worry, thinking of how their wealthy lifestyle will be maintained to whether their inheritance will not be  mismanaged.

We have all made money mistakes at some point in our lives. We have developed various mind sets, attitude and behaviours about money while growing up which are even unhealthy and needs to be excoriated.

Money is a subject that provokes strong emotions but we rarely discuss it even with our friends and family. Perhaps, financial therapy just offers a much-needed platform to discuss these feelings with someone who won't judge or criticise us.

In these times of economic recession, when there is decline in global oil prices, high rise in forex rate, dwindling foreign reserves, unemployment, increased cost of living and increased cost of goods and services. We must not lose faith. This is the time to take responsibility for our finances.

I seek to empower people regarding their finances. I hope to inspire kids, teens, men, women to attain financial security and independence. 

Let's journey on this ride together.......

We will succeed! 

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