What is the difference between a “need” and a “want”?

you need food. you want an HD TV

A need is a basic item required to liv - think food clothing shelter. A want is an item that isnot required to maintain life - think television, cell phone, etc.

Bear in mind that wants can become needs - if you have a job in which you are required to be on-call, some form of telephonic device is needed and is no longer a want. The question then becomes, is a basic cell phone with bare bones calling plan the need and all the other stuff a want?

Almost anything that is a want, stays a want in real life, although humans rationalize by making things a need (I want a new car becomes I need a new car because mine is old [never mind it still runs fine]). Or, I need food, so I will eat out tonight (eating out is a want, you can just as easily supply the need with a bowl of cereal at home).

Usually it's the monthly expenses that kill you. When money is tight, it is easy to put off buying clothes. What kills you is having extra channels on your cable bill, high speed internet you use twice a week, subscriptions to navigation systems, sattelite radio, and so on. Those are the wants that reduce your expenses by $100 a month, rather than just going without a new thing that will save you a little money right now.

Check-list? Needs/wants is always a matter of opinion and varies by your personal situation. Some people would say a house isn't a need if you have a tent and a place to pitch it.

Characteristics of Needs and Wants:

1) Needs: Is it something you need for your health, to keep a roof over your head, or to keep from freezing to death?

An example here would be that paying your rent is a need. You need a place to live and to keep warm in winter and cool in summer. Another example of a need would be medicine that you need to stay healthy, such as insulin if you are a diabetic.

2) Want: Is it something that you do not need for your health, to keep a roof over your head, or to keep from freezing to death?

An example here would be a PS3 gaming system. It may be fun to play games with, keep you and your kids entertained, but it will not keep you healthy, keep you warm in the winter, or cool in the summer.

One gray area that a lot of people get into is with cell phones. Yes, we do need some way to keep in touch with loved ones, be able to call 911 in the event of an emergency, but that can be done with a basic land line or basic cell phone. That would be an example of a need. A Motorola Razr that can play music, access email, and many other things is a want. Sometimes whether a thing is a need or want depends on what you will do with it. For example, for most people internet access is really a need, but if you have a business that depends on internet access, for your business, it may actually be a need.

So, to get you started, I have made up a list of general needs and wants so that you can have some idea of where to go from here.

Needs:

Rent/Mortgage Payment

Insurance

Utilities - gas, electric, trash pickup

Landline or Cell Phone

Medicine and Healthcare

Vehicle Maintenance and Gas for Vehicle

Car Payments

Wants:

Gaming Systems

Second Phone Line (Such as Cell Phone if you already have a land line)

Internet Access

Going Out to Eat

Beauty Treatments - Manicures, Hair Dye, Permanents in Hair

Video Rental

Going to the Movies

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If the "need" is in the realm of insuring you have food, clothing, housing and transportation, it is to be further assessed to see if it is a true need.

If it falls into any other category it is a "want"

For example, if you have no food in your cupboard, this is a need. If you didn't make dinner and decide order out, that was a "want. If your door is broke, this is a need. If you replace the door because it looks ugly, this is a want. If your engine blows on your auto. Replacement is a need. If you decide to replace the entire auto for a better one and it puts you in debt, this is a want.

Most people want. Few need.

think about how not having it will affect your life. something you NEED is something you literally can't do without. i.e. food. you need to buy food. something you WANT is something that you could live without. i.e. a new TV. it would be nice to have, but you don't need it. you can apply this really harshly if you want to save money. try to avoid buying anything new unless you absolutely need it. downgrade on some groceries. (for example, buy store-brand) hope this helps.

want is emotional.. need is necessary and essential for life.

you don't want food, you need food.

you don't need a bag of brownies.. you want a bag of brownies.

you don't need cat litter, you need cat litter.

you don't need a new cat bed, you wan't a new cat bed.

unless your tv is broken, you don't need a new tv.

an emotional purchase is anything you want just because you see it's there. if you can walk away from it and easily forget about it, then it's an emotional purchase.

for example, your husband may go into an electronics store and say "HOLY ****! I REALLY WANT THIS 72" LCD. it's 1080P and comes with a blueray player.. i NEED it....

but you know what? if he walks away from it and forgets about it? it's not a NEED... it's a WANT....

another way of knowing what an emotional purchase is: when you buy it, you have buyers remorse. you get pissed off at yourself for buying it, and most likely return it. or you don't return it, and it sits there doing nothing, and you look at it every day knowing you wasted your money on it.

put this into perspective..

You are trying to cut back on things to save money.

i don't know your situation.. but look at it like this. a person who makes 1 million dollars per year, but spends 800,000 on a mortgage, 150,000 on other costs of living, and 49,000 on JUNK

only puts away 1,000 per month into savings.

a person who makes 30,000 a year, and spends 29,000 a year, only puts 1000 into savings.

a person who makes 30,000 and spends 15,000 puts 15,000 into savings.. so..... the person who makes 30,000 and puts 15,000 into the bank will HAVE a million by the time they retire, whereas, the person who MAKES a million per year is SCREWED when they lose their job and have no savings........

When budgeting, you HAVE to budget for "fun" you have to budget for being able to go out at least 1 time per month and do things other than sit on your asses at home all the time. it helps relieve stress..

aside from that, i don't know how old you are but. 9 out of 10 people today who retire will retire in DEBT and cannot AFFORD to live until their 70 without working.

DONT BE THOSE PEOPLE... you can't rely on social security. You HAVE to do this for yourself.. you HAVE to start putting money away NOWWWWWW...

If you have to, put it in a big jar so you can SEE it grow and know you cant touch it... try putting a dollar a day into the jar.... you'll find ways to make it 5 or 10 pretty quickly. you'll find ways to budget and not spend that money so you can put it in the jar.. it will become an obsession.... eventually you'll need a second jar.... If you CANT put at least 10% of EVERY pay check into the bank as savings, you are living OUTSIDE of your means.. it means your house is too big, your cars are too expensive, you're buying way too much junk that you don't need, and trying to live outside of your lifestyle.. your options are to get better jobs, or sell some of the crap that takes up all your money!

If you have kids, obviously they are a major cost as well. If you don't have kids, and you are worried about saving money now, then it's obviously not the best time to be thinking about having them. you need to be financially set..

You don't HAVE to make much to be able to save.. just live WITHIN your means and you can.

biggest mis conception is that a person has to make 100k per year to be successful. you don't.. as long as you save as much as you spend.. you may not get all the toys you want, but, you won't be homeless when you're 70.

need = food, bed, clothes, like necesaries

want= movies, games, fancy cellphone, fance car, make up (yet i think id put that under need, jealwery, stuff like that

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