How to distinguish between what you need and what you want

Have you ever found yourself "needing" something that, when you looked back, was a total waste of money? Maybe it is because when it comes down to it, we loose sight of what a need and what a want is. So, let's just look at what those two things are: A need is something you have to have, a want something that you would like to own.
Fairly straight forward and we all know it, isn't it? Of course it is... until we get to the store. Then we get really creative. Quick trip to McDonald's? Well, you just can't argue the fact you HAVE to eat. Those adorable shoes are definitely a need - you can't go barefoot, now, can you? Oh, and what about those power tools that you saw on sale? Having those would save you tons of money as you can do the repair at home yourselves. Yeahhhh right!!!!

If you add up all those cleverly defined "needs" you get to quite a big lump of sum that could have been put to better use - like paying off debt or putting it towards an emergency fund.

But seriously, if you have a better understanding of what a true need is, you may be able to catch yourself before you commit the crime. Basically, a need is something that you need to survive. And when it comes down to it, there are four basic needs that we have to survive:

• Food and water to maintain your health - fizzy drinks, tea and coffee are actually luxury goods. And if you have small children you also need to have milk.
• Someplace to sleep, that has a roof that doesn't leak, makes you ill or anything like that. A car seat or a bridge are just NOT an option, although, sadly enough, there plenty of people in our society that do live like that.
• Clothing to be appropriately dressed - that does not include designer clothing (although there are people who do believe that they are), 10 pair of shoes etc.
• Basic health care and hygiene products. You have to take care of yourself.

Everything that goes beyond this – Spa treatments, a large house with a garden, take out meals every day or fancy restaurants visits, and yes, cigarettes are no needs. They are wants. If you have the money go for it - if not, cover your true needs first. Treat yourself according to your level of income, but don't get yourself into unnecessary debt to get what you cannot afford. Life is, after all, meant to be enjoyed.