How do I Differentiate Between my My Wants and Needs?

One practice you can use in order to differentiate between needs and wants is filling out a needs vs wants worksheet. Another practice you can use is simply asking yourself “is this something I need in order to stay alive or be healthy?”. If it is, then it is a financial need. If it isn’t, it is a financial want. 

 

Here is a flowchart that can help you determine whether or not you should make a purchase:

 

Next Chapter: 

Wrap-up Wants and Needs

All Chapters:

[Chapter 1]: Introduction to Needs and Wants

[Chapter 2]: Why Differentiate Between Needs and Wants Anyways?

[Chapter 3]: What are Financial Wants?

[Chapter 4]: What are Financial Needs?

[Chapter 5]: How do I Differentiate Between my Needs and My Wants?

[Chapter 6]: Wrap-up Wants and Needs