Needs and Wants

A need is something that a person must have in order to continue to survive. The basic needs of life are food, water, clothing and shelter. We also need rest, health, love, friends, family, security, etc.

A want is a choice. It is a desire which a person may or may not get and life goes on, whatever the outcome may be.

To differentiate a need and a want, let's us look at the following example.

We need to eat in order to continue living. But when we choose what to eat, it becomes more of a want than a need. For health reason, we should be eating fruits and vegetables but in our mind, we would want to eat steaks and other types of meats.

To be able to differentiate both needs and wants would be essential in your journey to financial freedom. To be able to control and not giving into all your wants, you would be able to save a lot of money.