What Is The Difference Between Needs And Wants? [& How Do I Afford Both?]

One of the most common pieces of financial advice is to focus on needs instead of wants. Knowing how to prioritize your needs over your wants truly is an effective starting point. But to take that first step, you need to know the difference between needs and wants.

In this guide, you’ll learn how to evaluate needs versus wants. Plus, you’ll leave with a plan to help you better afford both. Because putting your needs first doesn’t have to mean abandoning all of your wants.

Is It a Need or a Want?

In the simplest sense of the word, a need is something that is essential for human life. And we don’t mean WiFi.

Traditionally, needs are defined as:

• Food
• Water
• Rest
• Shelter
• Clothing

Whether you’re working from a list of these five basic needs, Maslow’s hierarchy, or a modern spin that even includes the Internet, you should notice something about human needs. They’re fundamentally important to life.

And it’s also really easy to transform a want into a need.

A want is something that is desirable, but non-essential. However, thanks to The…