Wants and Needs

 In personal budgeting, understanding the difference between wants and needs is crucial for financial stability and achieving long-term goals. Needs refer to essential items and services required for basic well-being, such as housing, food, utilities, and healthcare. These are non-negotiable aspects of daily life that must be prioritised in any budget, ensuring that you and your family have the necessary foundation for safety, health, and comfort.

Wants, however, are non-essential items or experiences that enhance enjoyment or satisfaction but are not necessary for survival. This can include dining out, entertainment subscriptions, fashionable clothing, or the latest technology. While satisfying wants can bring happiness and enrich your lifestyle, prioritising them over genuine needs may result in financial strain or mounting debt. By carefully distinguishing between the two, you empower yourself to make responsible choices, allocate resources effectively, and maintain a balanced, sustainable budget.

List all the items you spent money on last month as a shopping list.

For each item, identify whether it was a want or a need.

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