needs vs. wants

When trying to save money, one of the first places to start is looking at where you money is going.  Are you spending the majority of your money on needs or wants?  In order to save money, it is helpful to make sure you are spending the majority of your money on NEEDS.  Print out your bank statement for the past month and highlight all your needs in one color then highlight all your wants in another color.  You should have more needs highlighted than wants.  If not, make some changes; stop spending so much money on wants.  Cut back on 1 want per month and you will save money.

So what is a want and what is a need?  Sometimes it is hard to tell.  Do you need to buy your morning coffee or tea from the coffee shop?  Probably not.  Do you need to buy groceries to feed you and your family?  Yes.  Do you need to buy that cute new sweater?  Probably not.  Do you need to have enough clothes?  Yes.  Make a list of what you think your needs and wants are, this will make it easier to see where you can cut back.

Here is my challenge for you:  Do you NEED TV?

When you think about it, the answer should be no, I don't NEED TV.  Cut back to basic cable or get ride of cable altogether.  You can watch shows online or get a mail order DVD service for shows and movies.  Either way, it is much cheaper than spending money on cable.  You will also cut down on your electric bill, saving you even more money.