Need Less: How To Spot Expenses That You Simply Don’t Need

When it comes to money, we tend to be very persuasive with ourselves.

What the majority of people tend to do is talk themselves into making purchases or buying a particular item or dabbling extensively in a service that we believe wholeheartedly that we need.

In actuality, it’s a want, and nothing more.

But much the same way a dieter or someone trying to lose weight argues that one cookie periodically isn’t going to make a difference, and then that cookie turns into a bag of them, you are dealing with a slippery slope as far as money and how you save and spend it is concerned.

The problem stems from not understanding, even though the language and words themselves are quite clear, the difference inherently between a want and a need.

Now, if you ask someone to describe how they’d clarify each, you’d most likely get the right answer. A want isn’t a necessity, quite frankly, and when you’re talking about saving money and spending smart, you can eliminate wants, while needs become the tent poles of any good budget.

But yet we still have a money dilemma going on now to the tune of the average savings account at $1,000 and debt in the $30,000 range. That just doesn’t come close to adding up when you think about wants versus needs and our supposed understanding of them.

This points to the more adept financial planner of the household or themselves to start cutting items or services that you don’t need to save money. You can start by looking at two very easily cut-able expense: eating out at restaurants and daily expenses that add up quickly. The eating out can be solved by taking the groceries sitting in your cupboards or fridge at home and making meals for the entire week. Daily expenses such as a cup of coffee every day, cigarettes or even a bottle of water twice per day equates to thousands of dollars you could be saving each year. A $4 cup of coffee and $2 bottle of water per day alone means you’re spending more than $2,000 on just those two items.

And then, you have the expenses or one time purchases you simply can’t explain. Why you thought you needed a speedboat, hot tub or a second vacation this year is unbelievable and certainly isn’t going to help your saving money cause. You cannot reason with yourself when it comes to money that you equate spending with happiness or reducing stress. The stress of being in debt and not having money is going to be waiting for you even after you back from round 2 this year in Florida.

The easiest way to spend less is to budget and be reasonable with yourself when you look at your income. Living within your means isn’t as far as spending, that’s for sure, but if it means being able to save and live comfortably versus paycheck to paycheck, you might think about persuading yourself in a different direction.