Needs and Wants

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Needs and Wants

A very first consideration must be, "Is this a luxury item or a necessity?" If it’s a luxury item, you may think about not making the purchase at all, or putting off the purchase until it doesn’t put a big dent in your already tight budget. An example might be waiting for a tax return or an annual bonus. Delaying the purchase of a major item might allow you to save an additional $500, for example, so that the purchase of a luxury item, or a necessity with more fun features, doesn’t create havoc with your current budget.

Next, examine your expectations

Once you’ve made the decision to go ahead and make the purchase, it’s time to take a look at your expectations. Do you need a bare bones refrigerator, or do you want the ice maker on the outside? To help you decide on the bells and whistles, or wants versus needs, list all the features and specifications that you must have and all those that you would like to have. With that list, you can begin to look at what refrigerators you can afford.

When children are involved

A word about children: It is especially difficult to separate wants versus needs when making major purchases for and/or with children. When buying for children, we always want to give them the best, but that’s not always the best thing for them. When buying with children, it is sometimes difficult not to cave into the "nag factor." Whether it’s a gaming system a new computer, or even a car for graduation, parents shouldn’t jump to get them what they want; consider again what they need first.