In order to get to your financial freedom; you need to take care of your needs and wants in the future. Focusing on what you need rather than what you want, today – allows you to free up some money to invest for a better life. When your investments start paying off; they’ll pay for everything that you want.
How Do You Tell The Difference Between Needs and Wants?
A need is something that you have to have. If you don’t have it then your quality of life will suffer. A want, on the other hand, is something that you’d like to have. If you don’t have it, you may feel like you have missed out but your life will not be appreciably worse for it.
Needs come in four basic categories (from a financial perspective – there are emotional and spiritual needs too):
- You need shelter. That means you need a roof over your head and four walls to keep the elements off. You probably also “need” the basic furniture to remain comfortable within that shelter too. This is 2017 and we don’t live in caves, after all.
- You need food and water. Starvation and dehydration is a bad idea. You need to consume enough nutrients each and every day to remain healthy. You don’t need to consume an excess of these things – that’s a want creeping in.
- You need healthcare. You and your family are entitled to be healthy. There’s no point living with sickness or pain if it can be treated, right? In fact, healthcare needs can be complex and should never be neglected if at all possible.
- You need clothing. This includes clothing suitable to work in and clothing suitable for children to attend school in. It doesn’t include Gucci, Versace or Prada. That kind of clothing is definitely a want, not a need.
I’d also add that in order to lead a fulfilled life rather than a life of misery; you need a little fun too. That might take the form of a hobby or developing an investment portfolio or playing with your children or whatever. It’s OK to focus on your needs but a life without fun isn’t a life that anyone is going to stick to for very long out of choice.
Before You Buy Something Ask A Question
Whenever you buy something, you are spending money which could be used for your financial freedom. So before you spend that money ask, “Do I need this or do I just want it? If I need this is there a cheaper alternative?”
If you just want it. Put it back on the shelf. Picture how much better your life will be when you have financial freedom and can take your kids anywhere in the world and do whatever you want.
If you need it – try to find a substitute. Nobody needs an artisanal coffee from a coffee shop. People managed just fine with instant coffee for a very long time. You can too. You still get the coffee, you just don’t get the associated swank today; instead, you get your financial freedom tomorrow.
Need Help Focusing On Wants Over Needs?
That’s what I am here for. I coach people to achieve their financial freedom. Let me show you how to focus on your needs so that you can have everything that you want in the future, get my Abundant Mind Toolkit today.