We all have needs and we all have wants!
What one drives your decisions more?
If you are reading this, then over 90% of what you have is wants!
Our basic human needs:
1) Food (and that is not eating out!)
2) Clothing (you have enough in your wardrobe)
3) Shelter (nothing fancy)
That is, it!
You can survive everyday with those basic 3 needs.
You may include a car in your needs list but really this is just another want! For example, you may ‘need’ a car to get to work. Why don't you ride share (Uber), use public transport, bicycle, or walk?
If you decide you ‘need’ a car to get to work, then the next question is, do you need a $20,000 car?
You want a $20,000 car and some of you out there want a car that is even more expensive than that!
The average car payment in Australia is $528 (Source: Budget Direct) and in the U.S. it is $554 (Link). Do not be part of this statistic. Save up and pay cash for whatever car you buy.
I paid cash for my first car and it cost $500. It was a 1987 Honda CRX and I wish I had a photo of me and the car to post here. I owned my first car for 6 years and sold it for $300 to another college student. Was it fancy?
Though I loved it because it got me to where I needed to go. It did the job of my ‘need’ of a car.
Most of us get into financial struggles because of WANTS, not of needs.
Do not misunderstand me, I have wants and I buy them all the time. But I have learned two things when making these purchases:
1) Pay cash for whatever want you have!
2) Know how to define a want vs need!
"There’s nothing wrong with acquiring wants, but you need to define them correctly."
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