Bellmore Group Management Services, Tokyo Japan The only way to save money has alway been the same

Bellmore Group Management Services, Tokyo Japan on The only way to
save money has always been the same
While a bad economy or an especially low-paying
job can make saving money infinitely harder, the
formula for saving has always been the same. To
save money, you need to spend less than you earn.
Obviously, this task becomes a lot easier when you
earn more than average – or if you live in a low-cost
area. If you have a six-figure income and live in
Arkansas, for example, you should absolutely be
socking some money away. On the flip side,
someone living on the same salary in an expensive
city like New York City, Boston, or San Francisco
might not have much if anything left over after
covering basic expenses like housing, food, and
childcare.
But, no matter your income or where you live, you have to find a way to spend less than you earn if you hope to save
money to retire, have some fun, and avoid debt. You can get a side hustle or a part-time job if you want, but if you don't
spend less than you bring home, you're always going to struggle.
That's why it's important to determine the difference between your "wants" and "needs" — and to understand why that
differentiation matters. Without a grasp on why these terms matter, it's significantly harder to get on the right side of your
financial ledger.
Wants vs. needs
What is a "want?" And what is a "need?" While everyone's wants and needs can vary, there's a big difference between these
two terms when it comes to how you spend your money.
Generally speaking, a "need" is something you absolutely cannot live without. You need a roof over your head, for
example. You need food and health insurance and transportation to get to work.
You need electricity in your house, you need food to eat, and you need a telephone. In this day and age, you probably even
need internet access for your job or so your kids can do homework.
A "want," on the other hand, is something you'd like, but could probably live without if push comes to shove. You want to
go out to dinner tonight so you don't have to cook. You want a shiny new iPhone X, even if you’re existing phone works
just fine.
You want concert tickets and an annual beach vacation, but you wouldn't die if you couldn't have these things.
A want is something you very well may be able to afford, but don't actually need to get by.
When needs are actually wants
But, what happens when something you consider a need is actually a want? This happens all the time, and it really throws
people off. Worse, it tricks people into justifying purchases they wouldn't make it they really thought it through.
For example, you need to eat, it's true. But, do you need to dine out at your favorite pub tonight? If you have food to eat at
home, the answer is no. But if you're in the mood to justify the purchase, you could tell yourself you need to eat and do it
anyway.
You also need a cellphone because it's 2017 and hardly anyone has just a landline anymore. But, you don't need to upgrade
to the new $1,000 iPhone, and you may not even need a smartphone. Heck, you may not even need a data plan — but
since you know you need a phone, you can convince yourself you need the best possible phone with the priciest talk, data,
and text package money can buy.
New cars are another area where it's easy to confuse what you want with what you need. You may need a car to get to
work. You probably don't need a brand-new car financed for 72 months with a $500 monthly payment. But, since you