Needs vs wants

I “needed” a new phone. My old one worked fine. I just wanted the new one. That was an expensive lesson in honesty.

A need is something you can’t reasonably live or work without: a place to sleep, food, basic transport, the phone that keeps you connected to work.

A want is something that makes life nicer but isn’t essential: the latest phone, eating out, new clothes when your current ones are fine.

The tricky middle

Most spending isn’t purely one or the other. Food is a need. A restaurant meal is mostly a want. Transport to work is a need. A ride-hailing app every day when a bus works is mostly a want.

A simple test: if you didn’t buy this, what would actually happen? If the answer is “nothing much,” it’s a want.

Wants aren’t the enemy

This isn’t about cutting out every want. A life with no enjoyment isn’t the goal. The goal is to choose your wants on purpose, after your needs and savings are covered, instead of finding out at the end of the month where it all went.