Only Spend Money on Necessary Things - Wants vs Needs

Words of Wisdom from a twelve-year-old. With a five-second countdown, I asked my twelve-year-old nephew to give me a topic to write about for the blog. He said that was too much pressure, so I turned around and gave him an additional three seconds. 😆The topic he came up with was to only spend money on necessary things. To say that I was impressed is an understatement.💕👍

First of all, many adults do not have this mentality, and if they don’t, it’s quite likely that their children are the same.  Adults who are responsible with money are likely to have children who are responsible with money.

What does it mean to only spend on necessary things? 

It means that once your basic needs are met, everything else is extra. Food, Clothing, Shelter, and Transportation are all important things. Beyond that, it’s easy to become a bit wasteful. We’re all guilty of it, but being mindful of how and why you’re spending helps you to gain more control. This does not mean that you shouldn't have nice things, it just means that it is important to separate needs from wants.

• Do you need a new car or do you want a new car?
• Do you need a new phone or do you want a new phone?

Those are just examples, but thinking about a purchase before actually making one can save you from spending wastefully. Decide if it's a true need or something you just want. Put priorities first and only spend money if you still think it is a worthwhile purchase.

Budget for Wants

It's a good idea to leave room in the budget for wants, but make sure you stick to it. I call mine "blow money" or "fun money",  each month I know exactly how much money I can blow or have fun with after rent, bills, savings, etc. 

If you have a little extra money, don't be in a hurry to spend it. First, be sure to direct a portion of extra funds to savings (pay yourself) and investments (let your money grow).  Now that's money well spent! 

Mindful spending leads to less wasteful spending! 😉