How can you tell the difference between what you really, really need … and what you just WANT?

Differentiating between needs and wants is basic to your financial stability. Can you tell the difference between a genuine need and something that you’d just love to have, though you could really manage without?

Here’s the acid test. A need, left unfulfilled, makes you want the item more. An unfulfilled want becomes weaker over time. It’s simple once you think about it, but in the course of everyday living, a want can really feel like a need. When in doubt, put it to this quick test.

It’s OK to want things, and you should have more than just what you need. It’s healthy to have some of the things you want. At the same time, it’s important to know the difference between a necessity and a luxury. With that knowledge, you’ll be in a position to make smart buying decisions.

Take a look at the following video for a little more information on Needs and Wants!