1.1 Needs and wants

In this section:

• 1.1.1 The difference between needs and wants
• 1.1.2 Prioritize your needs and wants
• 1.1.3 Test how you make spending decisions
• 1.1.4 Summary of key messages

Introduction

It's easy to say "I need"— but do we really need that thing? Often, we don't distinguish between the things we want and the things we really need. As a result, we spend without thinking on short-term wants and then find that we don't have enough to buy the necessities or reach our long-term goals.

In this section you will learn:

• how to tell the difference between needs and wants
• how to set spending priorities
• what your usual spending habits are.