Many people struggle with money not because they earn too little, but because they confuse needs with wants. Understanding the difference can help you save, budget better, and reduce financial stress.
What Are Needs?
Needs are things you cannot live without. They are essential for survival and basic well-being.
Examples of needs:
- Food
- Shelter (rent or housing)
- Basic clothing
- Healthcare
- Transportation to work or school
- Utilities (water, electricity)
If you don’t pay for these, your life becomes unstable.
What Are Wants?
Wants are things that improve comfort or enjoyment, but you can live without them.
Examples of wants:
- Eating out frequently
- Expensive clothes or shoes
- Latest smartphones
- Subscriptions you rarely use
- Luxury brands
Wants are not bad but problems start when they are treated like needs.
How to Tell the Difference
Ask yourself these simple questions before spending:
- Can I survive without this?
- Is there a cheaper option?
- Do I need this now or can it wait?
- Does this improve my life long-term or just for the moment?
If it can wait or be replaced with something cheaper, it’s likely a want.
Why This Matters
When wants take priority over needs, people fall into debt, live paycheck to paycheck, and feel constant financial pressure. Learning the difference helps you:
- Save money
- Avoid unnecessary debt
- Plan for emergencies
- Feel more in control of your finances
Remember: mastering money starts with small daily choices.
Brenna AKARABO
RADIOTV10
