Retail Minded put it well when they wrote, “Need is only a small part of why shoppers buy things. Want, which is typically driven by emotions, makes up a large part of why consumers choose to purchase things.” More often than not, the line between a want and a need becomes blurred and most mums end up with a pile of stuff that they or their children don’t actually need. In other words, what they end up with is clutter and insufficient savings.
What’s interesting is that it shouldn’t be hard to tell the difference between wants and needs, but for some reason, it turns out to be the hardest challenge for the majority of new mums. So is there a cure? There might be hope for those who are truly willing to simplify their life, get rid of clutter and rearrange their finances.
There has to be a balance between wants and needs
The first step is to learn the difference between the two, because it will help you stay in control of your budget. You need to evaluate whether the item (be it for you or your family) will truly serve a purpose or whether it’ll just end up in a box, unused for months and years. A couple of clear-cut, and common examples of “wants” include designer clothing (for kids and adults), and expensive dining. These two rank highest on the list. As you can tell, these are luxury items, and are clearly not necessities. However, that does not mean that you shouldn’t enjoy them once in a while. The secret is to treat these habits as “sometimes” experiences, or special occasions. This way, you and your family will still be able to enjoy luxury but without breaking the bank.
Should a savings account be a want or a need?
Simply put, having a savings account is wise. According to finance experts at NerdWallet, “Following a popular budgeting rule, you should devote 20% of your monthly income to savings and debt.” However, while the 20% rule is a general guide that works for some, it might not work for you as there are other expenses that may not allow you to set aside 20% each month. In other words, you’ll need to figure out what’s realistic for you, and go with that amount. And in case you need extra money for the month, according to experts at My-Quick Loan (https://www.my-quickloan.co.uk/), getting a loan is a fast and simple solution, which many families can benefit from. So, is a savings account a want or a need? Experts say it should fall into both categories.
Here’s the secret: create a balance between what you want and what you need, make wise, intentional decisions based on your situation and don’t be afraid to enjoy a little luxury once in a while.