Success Secrets; Needs v.s, wants for Middle Schoolers

Prioritizing Your Needs versus Your Wants

The most dangerous part of this exercise is the fact that as our income grows so do our imagined needs.  When you were making no money at all and you needed transportation you bought a Hyundai Getz. 

It made you really happy and you were very proud of yourself.  You even paid it off on time. However, in the meantime, your income grew and so did your aspirations. The Getz just was not you anymore and even though you fought with the idea that you did not need another car the thought of needing one overpowered the thought of not needing one.  Soon you came up with many justifications why you really need one.  If you drove a better car you would make more sales because people would look at you differently and respect you more.  (Your mind creating fantasy)  Eventually, you needed to upgrade.  You can afford it was one of the justifications as well.

Your income keeps increasing and after a couple of years your need for a better, bigger, more luxurious car grew as well and the small house you used to rent just ain't cutting it either you need to rent a luxury apartment. As a matter of fact not only do you need another car but it has got to be a SUV. So here we go back to the bank, take a loan and now we upgrade.

This is how it works in reality.  Needs seem to grow with our income.  For this reason, if you really want to get out from under the yoke of poverty it is important to follow the steps outlined hereafter.

It can be difficult to compartmentalize things into what we need versus what we want. Sometimes our wants feel like needs, and often the two even overlap. It is important that we get a good, clear grasp of this concept if we are to be responsible with our resources. Here are a few thoughts in regards to separating the two, and being comfortable with your decisions.

Prioritizing Your Needs versus Your Wants

The Tricky Part of Growing Up

Introduction 

Hey there, middle schoolers! Today, we're going to talk about something super important – prioritizing your needs versus your wants. It might sound a bit boring, but trust me, it's crucial to understand this as you grow up.

The Sneaky Trap

You know what's really tricky? As we get older and start earning more money, we often start thinking we need more things. It's like our brains play a sneaky trick on us! Suddenly, we imagine all these fancy gadgets, trendy clothes, and cool toys as things we absolutely need in our lives.

What Are Needs and Wants?

Defining Needs

Let's start by understanding what needs and wants actually mean. Needs are the things that are essential for our survival and well-being. They are the things we can't live without. For example, we need food, water, shelter, and clothes to stay healthy and safe.

Understanding Wants

On the other hand, wants are the things we desire or wish to have, but they aren't necessary for our survival. They are the extras, the fun stuff that makes life more enjoyable. For instance, that new video game, the latest fashion trend, or a fancy vacation – those are wants.

Why Prioritizing Matters

Managing Your Money

Now, here's the important part. When we mix up our needs and wants, it can lead to some serious problems, especially when it comes to managing our money. If we spend all our money on wants without considering our needs, we might end up in a tough spot. It's like eating dessert before finishing your healthy dinner – not a good idea!

Making Smart Choices

By understanding the difference between needs and wants, we can make smarter choices. We can prioritize our needs first and then use any extra money for our wants. This way, we ensure that we have the important things covered before splurging on the fun stuff.

How to Prioritize

Step 1: Identify Your Needs

To prioritize effectively, start by identifying your needs. Think about the things that are necessary for your everyday life and well-being. This could include things like food, water, a safe place to live, and clothes. Write them down so you can see them clearly.

Step 2: Evaluate Your Wants

Next, take a look at your wants. These are the things that would be nice to have but aren't essential. Consider which wants are most important to you and write them down too. Remember, it's okay to have wants, but they shouldn't come before your needs.

Step 3: Make a Plan

Now that you have your needs and wants listed, it's time to make a plan. Decide how much money you can allocate to each category. Make sure you have enough for your needs first, and then you can use any leftover money for your wants. This way, you'll be able to enjoy the fun stuff without neglecting what's truly important.

Remember, middle schoolers, it's easy to get caught up in wanting everything we see. But by understanding the difference between needs and wants, and by prioritizing our needs first, we can make better choices and manage our money wisely. So, next time you're tempted to buy something you don't really need, take a step back and think about what's truly important. You've got this!

Be Honest with Yourself

A first and important step when deciding on the difference between a need and a want is, to be honest with yourself. Force yourself to keep coming back to this principle as you work through decisions. No matter how much you might be tempted to make excuses for particular things in your life, ask yourself each and every step of the way whether you are truly being honest.

What Do You Absolutely Need in Order to Survive?

Deciding between needs and wants is basically asking yourself the question, “What do I need in order to survive?” If you can justify something in your life based on the fact that you would not have a life or quality of life without it, then that is a pretty good start.

Once you have moved past the “absolute must-haves” then move on to the items and activities that enrich your life in an important way but aren’t considered a necessity. Prioritize these things from the most important to the least important, as this makes it easier to cut out the excess as needed. If times are tough, you can start by cutting out the least important activities, items, and habits.

And lastly remember, everything else should be focussed on becoming financially free so you can enjoy life without being tied to a job and a boss. Start putting all the extra money you have to work for yourself instead of you going out every day and working for money. Anything that can give you any sort of compounding, over time will make you wealthy and able to help others. 

What Truly Enriches Your Life, and How?

Once you decide on necessities, you will come to the point of making decisions based on which wants are more important than others. For example, you might only need food, clothing, and shelter as far as physical needs go. But what if your child is taking music lessons and planning to pursue this in college, then what? Music lessons are enriching his or her life and contribute toward his or her future goals. This could be considered an important “want” even though your child doesn’t need it in order to survive physically.

What Would You Take with You in a Fire?

This is a great question to ask yourself in many situations. Whether you are differentiating between needs and wants because money is short, or because you found it necessary to downsize and have limited room in your home and need to declutter, this question will give you the answers that provide you with all the information you need. If something is valuable enough to you personally, then it is worth holding on to and keeping in your life.

Make a Budget

Making a budget is beneficial for so many reasons. One of these reasons is that once you know exactly how much you have to spend, it is easier to prioritize. Make a list of all your incoming and outgoing money flow. Along with your list of prioritized activities and items, you will now have a way to eliminate unnecessary spending.

This is a simple list of ways to prioritize your needs as opposed to what you really just enjoy in life. Although it is nice to spoil yourself every now and then, when times are tough it calls for some structure and good, solid reasoning. With this knowledge in hand, you will be able to make changes and fall into a life that requires just enough of your time, energy, and money.