The Wants Vs Needs Matrix — Avoiding The Wants “Trap”

I thought we all understood the difference between wants and needs till someone asked me to help him break it down last Saturday… She knew it by definition but did not know how to apply it in her own life.

So, what’s the difference between a need and a want?

A “need” is a necessity you cannot live without. Food, clothing, shelter and medical care are basic needs.

A “want” is something you desire but isn’t necessary to live: a luxury, such as designer clothing, a vacation home or an SUV. A need maybe a pair of shoes but want the $5,000 pair of Balenciaga sneakers advertised on IG.

See more examples in the table below

When you can control your spending on life’s wants, you’ll have more money available to save for what you need in the future. Start by making a list of all your needs and wants. Try to be brutally honest about which category they fall into. Then, review the items on your want list.

Decide which are “high-priority” wants, and which you can truly live without. Then, try to create a balance between your needs and wants. What are you willing to give up? Can you compromise?

This matrix gives you a bird’s eye view of what to spend every dime on. I understand it’s never easy to make resources especially when you walk into a store and every item keeps calling your attention.

For example, can you give up your morning coffee stop (or make coffee at home) in order to save for the holiday trip to Takwa Bay with your friends or colleagues?

Always remember your Wants and Needs matrics.

I hope you get your monies right going forward.