In today's consumer-driven society, we are constantly surrounded by a wide range of products that are designed to meet various needs. However, some products are specifically created to generate a need within us, even if we didn't previously feel the need for the product. In this type of environment, it can be challenging to distinguish between our genuine needs and our wants, as we may be influenced by advertising and societal pressure to purchase items that we don't truly need. Imagine that you are scrolling through your social media feed and you come across an advertisement for a new type of smartwatch. The advertisement shows all the features of the watch, including fitness tracking, messaging notifications, and the ability to make phone calls. Up until this point, you didn't feel the need for a smartwatch because you already had a traditional watch and your phone for tracking fitness and staying connected. However, after seeing the advertisement and learning about all the features of the smartwatch, you start to feel like you need it. You begin to think about how convenient it would be to have all those features in one device, and you start to feel like your current watch and phone are inadequate. In this case, the advertisement has effectively generated a need within you for a product that you didn't previously feel the need for.
The above example demonstrates how companies can use advertising and marketing strategies to create a desire or want for their products within consumers, even if those products are not truly necessary. This makes it challenging for us to distinguish between our genuine needs and our wants, as we may be influenced by our societal expectations or external pressures to purchase certain items. By being mindful of the difference between our needs and wants, we can avoid overspending on non-essential items and ensure that we have sufficient resources to meet our basic needs. There is a Chinese proverb which clearly states that ‘Our needs are few but our wants increase with our possessions'.
Need
A need is something that is necessary for survival or well-being of an individual and is necessary to lead a functional life. For example, food and water, clothing, shelter and medical care are considered to be basic needs of a human being necessary for survival. However in today’s world we can add electricity, mobile / telephone, connectivity to the internet and ability to commute to the basic needs of an individual.
Want
A want is something that is desired but not necessary for survival of an individual. For example, the desire to own a Mercedes car for your commute is a want. While having a car may be convenient for transportation, it is not a necessity in order to fulfil the basic need of getting to and from work. This need can be met through other means such as public transportation or owning a cheaper car. Owning a Mercedes specifically is not necessary in order to fulfil this basic need.
Distinguish between need and want
Once you are able to distinguish between your needs and wants, the next step is to make a list of all your monthly expenses. This list should include everything that you spend money on, including bills, groceries, entertainment, and other regular expenses.
After you have compiled this list, you should review each item and mark it as a need or a want. For example, if you have subscriptions to multiple streaming services, you might consider whether having one subscription is a need (for entertainment purposes) while having multiple subscriptions could be classified as a want.
As you review your list, you can try to cut down on your wants by eliminating unnecessary expenses. For example, you might decide to cancel one or more streaming subscriptions to save money. At the same time, you can also review your needs to see if there are any cheaper alternatives or ways to cut down on these expenses. For example, you might be able to save money on groceries by switching to a cheaper brand or by shopping at a store with lower prices.
The goal of distinguishing between your needs and wants is to prioritise your needs and address them before spending money on your wants. This approach does not mean that you should never spend money on your wants, but rather that you should make sure your needs are met first. By following this approach, you can make sure your basic needs are taken care of before indulging in your wants.
In conclusion, it is important to understand the difference between your needs and wants in order to make smart financial decisions. By prioritising your needs and cutting down on unnecessary wants, you can make the most of your money and achieve your financial goals. By following the steps outlined above, such as making a list of your monthly expenses and reviewing each item to determine whether it is a need or a want, you can take control of your finances and make sure you are spending wisely. Remember, while it is okay to indulge in your wants from time to time, it is important to make sure your basic needs are met first. To conclude, I would like to state that you can’t have it all, but you can get most of what you want and certainly all of what you need if you prioritise spending.
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