The action of giving in to shopping temptations with disregard to its impact on bank statements is a characteristic that can be seen in the common college student. Although some may be able to get away with it, many students need to stick to a specific spending frame. This may seem like a complicated task to go upon, but it really just boils down to one simple question: Is it something you NEED or something you WANT?
Needs and wants are two polarizing concepts that people often get mixed up even though they play important roles in a typical, everyday shopping spree. Pretend you’re at the mall and you see a new phone case that you like. Should you buy it? This is where you determine if it is a need or a want. Stop and consider why you want to buy it. Is it because your old one is starting to wear out, or maybe because it is better quality than your old one? Or is it because you like the pattern and design better than your current one? Is it because it is on sale for a good price? All these different questions and their answers can be interpreted differently depending on who the buyer is.
If an item is classified as a need for you, it doesn’t mean that it cannot be a want for another person. Take a look at it this way, if someone is buying a new phone case because theirs has broken, it would be a need for them. But if someone has a perfectly fine case, the purchase would be considered a want. As it can be inferred, the meaning of a product varies from individual to individual depending on their specific life circumstances.
Furthermore, be sure to not confuse the concept of needs and wants with budgeting, while they are related they do have their differences. Categorizing products is essentially a stepping stone to creating a budget, but is still equally, if not more, important to manage your finances. This step is what helps you organize what outlets you should allow to take your money and if it has worthwhile outcomes, hence, showing the importance of having a healthy financial balance.
A simple method to sort your expenses into these two groups is to start off by listing out everything you desire to buy, whether you have the need for it or not. Next, make a mark of which ones you see as something you cannot see your life without. Whether it’s food, clothing, school books, etc. these will be the ones that will be purchased. Then take a look at what is left on your list. If you could only choose one thing to buy out of them, which would it be? Move that item to the top of your remaining list. Continue this process until you go through and rearrange all of what is leftover, from most wanted to least wanted. Now, look at your finances. Can you afford these products? Did their prices impact how you prioritize them? Should you save up for your favorite item or do you want to buy what you currently can afford? All these factors lead up to defining what is a need or a want for you.
When looked at from a broader perspective, this process is essentially choosing what is going to help you build the foundation of your future finances. The money that you end up saving now will allow you to purchase higher-quality products later on with less damage done to your bank account, but this does not mean not spending on your wants at all; they could add positive value to your life at this current moment. However, it should be kept in mind that your wants should not replace the spot of your needs on your shopping bills. Overall, it is imperative that, in order to ensure productivity while managing your finances, there is a responsibility of understanding the contrast between needs and wants.
Be First to Comment