Have you ever put a want in front of a need? That is the question a lot of people need to ask themselves. Webster Dictionary defines a want as, “To have a strong desire for and to have an inclination to.” In regards to spending money, this can be a problem. There were days I would buy things that I knew I didn’t need but it was that WANT factor that made me get it. Either it was that new video game that just came out, new shoes, or eating out despite a house full of food. Bottom-line, there are alot of things that we want or desire to have but indulging in every want is not good for you.
My wife would sometimes ask me, “Why are you putting those wants before your needs?” My response was usually because everyone else has it or it’s something I really wanted. But putting that want in front of a need is not the reality right now. Due to Covid, that type of thinking has put a lot of people into financial binds; and after seeing the definition for the word want, I feel that this describes most Americans today when it comes to putting a want in front of a need. Choosing desire over responsibility.
Since we know what a want is, let’s discuss what defines a need. A need is, “Something that is necessary for an organism to live a healthy life.” What I learned from Dave Ramsey is there are four things that you must include in your budget that falls in the NEED category. The four things are Food, Shelter, Transportation and Utilities. Breaking down each of the four walls is a great way to see why they are a need:
- Food is the first need listed. Everyone has to eat, so making good decisions can set you up for success so you won’t go over the budget.
- Who wants to be without shelter? No one does, but many people have been falling short and struggling to pay their mortgage or rent. You are putting your family in danger when you live so close to the edge.
- Transportation is also a need whether it’s by car, train, or plane. We have to have something to get us from Point A to Point B.
- The last thing we need is utilities. Which can be lights, water, and even your cell phone. Now I know some people may see cable as being a need instead of a want. Cable, to me, is listed more as a want than a need so you have to choose wisely about what you consider essential utilities.
With these four needs, you must account for them in your budget. They are an essential part of how we ensure that we live a prosperous life.
When we put the NEED first this will keep us on the path to making better decisions instead of putting ourselves in compromising positions. I never said it wasn’t possible to get out of a bad situation should you have to but why put yourself there in the first place? In order to ensure you are not putting yourself in compromising situations, here are some steps to take:
- Look over your budget to ensure that all of your needs are met. It takes at least three months to get a budget correct.
- Make sure you are having budget meetings with your significant other. This will help with anything that has been missed.
- Make sure you know what a need is versus a want. If you know what the differences are this will help you make better choices.
