Thursday, December 16, 2010

Knowing What You Need, And Want.

Hey Everyone!

It's time we talked about needs and wants. Some of you have probably heard about this a thousand times before, but most people don't really know the difference between the 2. So we'll explain it here!
Needs? Wants? What? Who even cares about this anyway?
It's important, because once you understand what you really need in life, from what you only want for temporary happiness, you'll be able to control where your money is going to. 

Also, learning to live within your means is an important skill that many people do not know how to do. The easiest and most effective way, is through a budget! Having a budget ensures that you don’t run up a debt because you’re overspending and helps you see where you’re spending unnecessarily.  

“Needs” are necessities like food, shelter and basic clothing. Everything else are usually considered as “Wants”. Try to follow the 50/30/20 budgeting rule if you can, and your finances will be kept in order.

Pay yourself first!
Saving money is easier said than done, but it’s still vital that you try to save a decent amount. Always pay yourself first, that is, save! Putting away a part of your income every month will ensure that you have a tidy sum in savings.

But why save? It’s not just for that rainy day; in time to come, we’ll have to buy houses, cars and ensure that we’ll have a comfy lifestyle upon retirement.  

Save every penny!
The cashsmart Team

1 comment:

  1. I have many needs/wants. Thank you cashsmart for helping me distinguish these!