Understanding the difference between needs and wants is a fundamental step in achieving financial stability and personal fulfillment. Approaching this distinction through a feminine lens can offer unique insights and empowerment for women. This article will guide you through a step-by-step roadmap to assess your needs and wants, considering your individual circumstances, and provide femininely inspired prompts for self-exploration. By identifying needs and wants in your life, you’ll navigate the emotions driving your purchases and make informed decisions, ultimately balancing financial responsibility with personal satisfaction.
The Importance of Differentiating Needs and Wants
Hold the eye rolls, please, as I attempt to surprise you with some cosmic wisdom after stating the obvious.
Needs are essentials required for basic survival and functioning, such as shelter, food, clothing, and healthcare. They are non-negotiable and are crucial for maintaining a standard quality of life. In contrast, wants are desires that enhance your lifestyle and bring joy but are not essential for survival. They can include luxury items, entertainment, and non-essential services. Distinguishing between these two can lead to better money management, ensuring that you cover your needs first and indulge in wants only when you have the financial flexibility to do so.
The truth is that something so obvious is easily clouded when we become unaware of how our desires and needs are closely tied to our sense of identity and self-worth, leading us to confuse our wants and needs through justification. When we want something, we are driven by our desire for happiness, status, or a sense of fulfillment, and we believe that want will help us attain those desires, leading us to rationalize and justify our wants as needs. This lack of self-awareness that leads us to confuse our wants and needs is the result of not being in tune with our own values, desires, and motivations. By tuning into our own emotions and exploring our own values and desires, women can avoid the slippery slope that comes from the tendency of everyone (including men) to blur the lines between reality and fantasy. Self-awareness is the reason a person will buy a Subaru over a BMW, as they will realize that buying that BMW will not truly increase their status or attract the admiration or respect they desire from their peers, as that BMW is a fleeting status symbol and, therefore, an illusion. This may lead them to stick to their needs and make the sacrifices they need to truly attain their desire for higher status, such as a fit body, higher income skills, or a higher net worth.
Understanding Individual Needs and Wants in Your Overall Budget
It’s essential to recognize that needs and wants vary greatly between individuals based on their lifestyle, profession, and personal values. Someone who has a busy lifestyle and wants to free up their time and energy to focus on things that truly matter to them, such as building their body, their career or business, and spending their time with loved ones, may need to outsource cooking, cleaning, landscaping, or other laborious tasks. While this is not actually a need for many of us, it could be considered a need for them. A realtor might need professional suits and a large mobile data package to facilitate her work, whereas a teacher might require business casual attire and educational materials. Recognizing these differences is the first step in creating a personalized plan.
Step-by-Step Roadmap to Differentiate Needs and Wants
Self-Reflection and Assessment: Begin by listing out all the things you purchase regularly. Include everything from groceries to subscriptions.
Reflect on each item and categorize it as a need or a want. Consider questions such as: “Is this essential for my daily functioning?” and “Can I live without this?”
Consider Your Profession and Lifestyle: Identify the specific requirements of your job and lifestyle. For instance, do you need a reliable internet connection for remote work? Does your profession require you to travel frequently? Categorize these requirements accordingly.
Evaluate Emotional Connections: Explore the emotional reasons behind your purchases. Ask yourself why you are drawn to certain items and how they make you feel. Feminine introspection can help here. Consider questions like: “Does this purchase nurture my well-being?” or “How does this contribute to my self-expression?”
Prioritize Your Needs: Once you’ve identified your needs, rank them in order of importance. This will help in budgeting to ensure that essentials are covered first.
Create a Budget: Develop a budget that allocates funds to cover all your needs. And yes, an emergency fund should be considered as a need, in addition to your retirement account, unless you want to forever trade your time for money. Only allocate money for wants if there is a surplus after attending to your needs.
Review and Adjust: Periodically revisit your list of needs and wants as circumstances in your life change. Adjust your budget and priorities accordingly.
Below is a List of Needs and Wants for Clarity
Mapping out specific examples of needs and wants in your life will provide clarity and confidence in decision-making. Here is how you can create your own map:
Needs:
- Rent or mortgage for a safe and stable home.
- Groceries that provide nourishment and energy.
- Professional attire for your career.
- Reliable technology for work and communication.
Wants:
- Dining out at restaurants for enjoyment and leisure.
- Designer clothing for fashion and style.
- Streaming subscriptions for entertainment.
- Travel for exploration and adventure.
Below are some femininely inspired prompts for self-exploration on your wealth building Journey:
- To cultivate your intuition and instincts when making purchasing decisions, ask yourself: “Does this align with my core values and instincts?”
- Practice self-compassion, self-acceptance, and self-care: Consider how each purchase supports your self-care routine and emotional well-being. Reflect: “Is this a form of self-compassion? Or is this a means of fitting into societal expectations?
- Creativity and Expression: Use your purchases to express creativity. Think: “Does this enhance my creativity or allow me to express myself?”
- Community and Connection: Consider the impact of your purchases on your community and relationships. Question: “Does this foster a sense of connection or community?”
Discerning between needs and wants through a feminine perspective can empower women to make thoughtful and informed financial decisions. By understanding your unique circumstances, reflecting on personal values, and prioritizing self-care, you can create a balanced and fulfilling life. Remember, good money management involves covering your needs and indulging in wants when feasible, ensuring a sustainable and happy lifestyle.