Bellmore Group Management Services, Tokyo Japan The only way to save money has alway been the same | Page 2

know you need to get to work, you can talk yourself into buying what you want on the premise that your shiny new ride is a
need.
Well, guess what. It's not.
In all these instances, you absolutely need the item in question — food, phone, transportation — but you're choosing to
spend more than you have to. In these cases, it's important to be honest with yourself about what you need, what you
want, and the difference between the two.
Three steps to help you separate wants from needs
There's nothing wrong with spending money on wants. I would even argue that paying for wants is an important part of
life. If life were only about working and paying bills, then it wouldn't be much fun.
The problem arises when people conflate their wants with their needs to the point where their spending stands in the way
of their financial goals. When we spend money on wants without determining if they're really a priority, we often
shortchange ourselves in the areas of our lives that really matter – things like saving money for college, emergencies,
retirement savings, and vacations.
If you're struggling to separate wants from needs, here are three steps to help.
Step 1: Decide which wants truly add value to your life.
If you're spending more than you should and having trouble separating wants from needs, it's smart to take a step back
and look at what you're actually buying. Do your wants add real value to your life, or are they made out of convenience?
Are you making discretionary purchases because they're important to you, or simply out of habit?
While spending on wants is an important part of life, some wants are more important to us than others – and if you stop to
examine you’re spending, you may find that many of the splurges you're making aren't really worth it. By deciding which
wants add real value to your life, you can determine which ones to keep and which wants you can live without.
Step 2: Trade away some of your wants for a better deal.
Depending on the "want" in question, you may be able to come up with an alternative action that let