Frugal Living: Define your Wants and Needs to Balance Your Budget

We’ve heard it all our lives: there’s a difference between what you need and what you want.  Have you stopped to think about the real-life difference between wants and needs for you today?

Let’s think about that need-want equation in different facets of our lives:

1.    Food. Everyone knows food is a necessity. However, within that category you have a lot of leeway. Yes, you need 3 meals per day, and you need good nutrition. But does that mean grilling steaks instead of hamburgers or noshing on elegant chips and gourmet dip in front of the TV? What do you really need to be satisfied and healthy?

2.    Clothing. Are you shopping because your last pair of jeans are coming apart at the seams or because you’d love to have a new top for the weekend—even if you have a coupon?

3.    Utilities. We all need electric, water, and (some of us) gas. Do we truly need as much energy as we use?

4.    Telephone. Communication is essential today. Our kids need cell phones with them at all times in case some crazy at school or the mall causes a crisis. Or they could have a car break down on a lonely street in a seedy part of town. But if everyone in the family has a cell phone, do you really need a landline phone? Many people are eliminating their landline and saving hundreds of dollars in phone charges, long distance carriers, and taxes.

5.    Cars. How many do you truly need? And do you need the latest model or can you trade that newer car in for an older model and eliminate a payment plus lower your insurance premium?

6.    TV. With all the free movie and TV series sites on the web today, do you really need that cable or satellite service? Yes, you’d have to change your habits but what would you really lose? You’d have to give up a lot of commercials, that’s for sure. Why pay $50-$100 each month for something you can see for free?

7.    Internet service. Do you have more download/upload power than you truly need? If you are in business, sure you need to be online in a big way, but what if you’re not? Or maybe you can cancel the $75
satellite bill in favor of a $30 DSL connection. That makes sense. But having both? Maybe not.

8.    Grooming Products. If you have allergies, you may need a $5 bar of soap or $7 bottle of body wash. But what if you’re not allergic? And how many bottles of lotion does it take to keep your skin soft? Generally a single bottle from the dollar store lasts about 6 months—for $1. Total up the cost of the body products in
your bathroom and compare. Which of those do you really need?

9.    Eating out. Do you need to go out every weekend? Or call for take-out on a regular basis? Instead, how about inviting friends over with everyone bringing food along? The cost would be the same as eating
at home but you get to share and have fun too.

10.    Toys. Do we need to say more? If you want to replace the basketball hoop so you can shoot baskets with your 10 year old, great. But a $60 video game?