If you'd like to have more money to spend, the first step is to know the difference between your needs and your wants.

If you'd like to have more money to spend, the first step is to know the difference between your needs and your wants.

Here are some basic definitions:

Definitions

1). Need: A necessity, something required, something essential for life

2). Want: A desire, something wished for, something non-essential

Using these definitions, "a roof over my head" is a need. So are clothing, food, tools for work and medications. "A vacation" is a want, and so are meals in restaurants, video games, gym memberships and designer shoes.

Of course, one person's want may be another person's need. In my case, I need a gym membership, as I discover it to be a fix to my mental health wellness. I need to visit the gym at least 3 times a week, that works for me, however I don’t know about you.

1). peer pressure:so, and so has this so I should do him/her one up.

I was talking to an ex-girlfriend who told me while I was visiting, and I quote” everyone else in my community seems to be buying the fancy houses in Woodbridge, we bought this home as you can see is a little old but we did not want to be drowning in bills. We wanted to still be able to afford to take our kids on trips and create memories, if we have bought one over there I think our lives will revolve around paying that house and not being able to do anything else with our kids”.

I applauded her, it’s always good to know what’s in your wallet and don’t follow the society narrative.

I will tell you that, I was never the one to crumble under peer pressure. I remember very well at some point everyone in my cycle of friends had an iPhone. They would often complain that I was the only one who did not have one and suggested I should get on board and join the gang to this iPhone wagon.  I never understood the need to do that. My question to my friend was always” when you call me do I answer? When you text do I reply” then what is it that I need.

The next time I bought a car I told my friends again with excitement and they did not so much meet my excitement with enthusiasm as I had purchased a 2^nd hand car. I am not as cool lol and I again my response would be like. Does it take me from point A to B “why do I need to break my pocket for no reason. I would also respond to these comments with this sentence “I don’t know what’s in your bank account, but I know what is in mine” so I was not going to go in so much debt so that I can fit in.

I know many of us go through this, do you need it though? A New car I mean, the latestiPhone. I know I want Samsung fold;(emphasis on WANT), I checked the price and I was like naaaeeeehhh maybe in another 2 years. it would not be as cool anymore, but for meit would!

Am I here to impress you or me? Don’t break your pocket for things that are not as important. You might think it is now but maybe it’s time to re-think.

We sometimes also go by the society pressure.

The Grid

When we plot our Wants and Needs in a grid, our decision-making is given a new dimension — no pun intended. We can visualize the interplay between wants and needs, understand the permutations and tailor our thinking accordingly.

Don’t get me wrong, it’s always a tradeoff. I had another friend who loves to eat out, me on other hand not so much. I grocery shop and do meal prep. Every week she would say let’s order from here or there, and my answer, I already cooked my meal why do I need to order more. So, this is not to say I am a stuck up and I do not enjoy life, or eating out now and then, believe me I do but within my means and when I want. I go all out because I planned for it. Occasionally a friend will say hey let’s do a brunch nothing wrong with that, again not a weekly thing.

 It’s a tradeoff to eating out 2 to 3 times a week by saving that money and taking a vacation to relax. if eating out that many times on top of your grocery bills, the fresh vegetables you bought rotting in the fridge because you choose to eat out instead of cookingby all means go ahead.

How ever make sure that you bank accounts are balanced, bills are paid, some savings aside, then go out and enjoy, you deserve it.

In summary:

1). Needs are things that are essential for life. Wants are non-essential items that we would like to have.

2). It's important to differentiate between needs and wants and to balance them in your life.

3). Set spending priorities so you will have money for the things you really need and want.

4). Many factors influence how you spend, including emotions, habits and peer pressure. Watch how these different factors affect your spending decisions so you can get control of them.

If this is not so before you indulge check with your favorite financial coach lets balance & align your accounts.

Check in on our next blog where we look into:

Education system – on university level.

Many studies have shown that immigrants and children of immigrants often tend to imitate the behavior of their parents and their community …. Does this work here though when it comes to how different the systems are setup……