SmartSpending: Do I Really Need That?

In some situations, spending money on things you either need or want is really all right. But what’s the most important thing? Are you buying a specific item because you need it or do you want it?

NEEDS VS WANTS

This may be easy to understand but it can be very complex if we’re going to interpret it as your “tight budget” for your needs and “healthy savings account” for your wants.

People sometimes mistake to identify needs and wants. It’s easy for us to say, “I need a new phone,” “I need new shoes,” “I need that AirPods,” and eventually we categorized these as needs, even though it’s not very vital for us to buy that we think our happiness depends on it.

Normalizing something we can’t afford can be bad. We tend to compare what we have, because if others do, you feel you should have it too. Sometimes it’s really hard to determine what we think is a “need,” even if it seems like a “want.”

Smartphones, for example. There have been many new models coming out onto the market. Since it’s new and has a lot more features than the phone you’ve got right now, you ‘re already trying to think about a way to afford that phone. Since one of the main purposes of having a smartphone is to communicate with your family and friends, do you really need the latest one?

To help you spend smart, here are the following questions that you can ask yourself:

1. Do I really need it?It would be convenient for you to say that you really need it, but you need to be mindful of the other needs that you might be thinking about in the next few days or weeks. Since you may need more important items, but you’ve already invested it on the very least item you really need. Which brings us into our second question
2. Do I need it now?Yes, you may need it. But maybe just give yourself a few days or a week before you buy the item / s. Let’s use an example for the smartphone. If your phone is already cracked or has any technical issues that you don’t want to bring in a repair shop as it might cause more damage, you may have to buy a phone now.
3. You don’t need it, but how badly you want it?Being confused about the idea of wants vs needs might be a little too much, but you should also know that you deserve to have things that brings you joy. And it’s all right. Sometimes buying something like a plane ticket that goes to your favorite destination could also feed our soul and help us to develop mentally and emotionally.

Now that you’ve asked all these questions, it might be easier for you to think twice before buying something. It’s good for your savings, and for yourself. Just note, if you are willing to prepare and budget wisely it will always be rewarding to buy what you want and need.

But in the event that you really have to buy something or an emergency comes up, JuanHand is here to help you! Avail our personal loans by downloading our app and get your cash with ease!