When you have a lot of desires and wants, it is hard to tell what you really need and really want. T.V., Internet, society and our loved ones most times blur the lines of necessity and luxury for us. This in turn makes luxuries a necessity, while more important needs are shoved to the back. If you are able to narrow down your wants and focus on your needs, you will be able to save more money!

First step towards recognizing your needs more is to separate your wants and needs on a piece of paper. Having a visual can help you see unnecessary spending and help you plan better. The second step is to plan your purchases more carefully. If you want something (or need something) in particular, it is better that you plan for it. Third, research the things on your list so you will be able to save the money for the purchase and purchase it smartly.

In retrospect, the only things we really need is air, water, food, and shelter (and sometimes clothes too). For all the other items that don’t fall into the basic needs category, they should be considered as optional purchases. When you have all your affairs in order, make that wanted item on your list a reward for your efforts completing challenging tasks that you may have put off.