In ONO I talk about the fact that I have always struggled with budgets as a tool to limit consumption. Although I know that it makes having a surplus possible, budgets have never worked for me. So I came up with my “Wants vs. Needs” system and I have found it to be very effective because of its utter simplicity. 

At the point of purchase of any item, large or small, you can ask yourself, “Do I want it or do I need it?”  If it’s a need, it’s a need.  But if it’s a want, then you can ask yourself if it’s worth the opportunity cost.  My opportunity cost is always figured in direct relation to time with my kids and family.  I have to buy my time, so the less money I spend, the more time I can buy to be with them. It’s very simple. With a carrot as large as time with my kids at the end of that decision, it makes tough choices easy. 

The reason for this blog is to pull apart the reality that there are times when a want becomes a need.  An example of this would be when you just flat-out need to treat yourself to something nice that only money can buy—dinner out with your spouse, a sporting event that you will enjoy, or some time with people you love doing something special.  Sometimes you just have to treat yourself and fit it into your disciplined spending/saving plan. 

A want becomes a need when it’s about self-care.  You must have a reward system in place while you’re fighting the good fight.  If not, you will wear down and become ineffective both financially and personally. 

My cue for telling the difference is when I take stock of my spiritual energy level.  If it’s too low I can feel that it needs to be filled with some sort of reward.  That reward doesn’t always have to be bought, but often it does.  Find your cues and fill when necessary.  Remember, it’s not about how much you make, it’s about how much you save and invest.  Your goal is to find balance in that so you can enjoy the ride.