Is it true that distinguishing between needs and wants can save money?

[Suba]

According to wise people, if we can distinguish between needs and wants, it is an important key to saving money. Needs are essential needs for life such as food, clothing, shelter, while wants are often secondary and tertiary needs such as buying the latest smartphone. If we can prioritize needs and limit spending on items that are only desires, then we will be able to increase the amount of savings each month or allocate it to investment.

It would be nice if before buying something, we ask ourselves, whether the item we are going to buy is a need or just a desire that we can postpone as future spending.

 

[Nomad]

That's very true but most of the time the line between needs and wants blur, or at least people cannot distinguish.

 

[Augusta]

Yes, Making the distinction between wants and needs can help you make more intentional spending decisions, ensuring that your budget aligns with your financial goals.

 

[Starmix]

If you are smart observant, you can surely distinguish between wants and needs. Firstly, you must know well the descriptions of needs and wants. It is from there you will know how to control your spending.

 

[Springtime]

Distinguishing between needs and wants can save money for sure. Needs are the necessities for your daily live. Wants are what you desire to have. With limited budget, you should set your priority to buy something you need. Buy what you desire if you have spare money.

 

[eLdavis]

Yes knowing your needs from your wants is a great way to help an individual save more money. Have tried it before and it worked.

 

[Fidelia]

It is not just distinguishing wants and needs that saves money. Being proactive to chase your needs as priority while reducing wants is what actually saves money.