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To buy or
not to buy
While Wisely was filling in the family budget template...
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Pa, can you give me some money? I want to buy a watch. |
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But you already have a watch! |
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Mine does not have full chronograph function.
All my friends have it. Come on... Pa... |
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My dear grandson, you must know the difference between "Needs" and "Wants". To own a watch may be a "Need", but to have a top-end model is a "Want".
And most "Wants" are usually not necessary. |
Our decision to spend is usually motivated by "needs"and "wants". "Needs" are related to the essentials in life, something you cannot "live without". "Wants" are usually things that we desire, such as luxury items. More often than not, our "wants" are not absolutely necessary.
To buy or not to buy?
Before you spend on anything the next time, ask yourself the following questions to determine whether it is a "want" or "need" ...
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"What is my reason for
spending on this item?
Do I really need it?"
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"How would things be
different if I had it?
What would happen
if I did not have it? "
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"Do I need to spend
more if I had it?
Are there cheaper
alternatives?"
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Getting Started – Differentiate Between Needs And Wants
Look through the monthly expenses you have put down in the Family Budget Template previously and determine the "needs" from the "wants". Put "1" against the "needs" and "2" against the "wants". Now you will be able to identify which items to trim to help you save more money. Remember to involve everyone in your family so that the family budget becomes a shared responsibility.
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