Money is everything when you are
living in the urban, in general it represents power, position and authority. It
is a tool that can maximize your purchasing capability as a consumer.
The basic practice in order for you
to maintain the good health of your cash flow is to determine your wants and
need and going to the process of decision making to put an action.
Personal Opinion: Wants and Need
Wants are the things that you like to have in your belongings or
personal assets that may satisfy your urge of having one.
Needs are the things that passively a part of your lifestyle. These
may be embodied as Food , Shelter, Clothing and Love which satisfies your
natural requirement to keep moving forward in life.
Differentiating
Wants and Needs in the 21st Century
Today we are living in a worldly and materialistic era of man,
which we derived from what is the latest trend or latest culture of our
environment. A good example of this is the influence of the social media to all
of us, we see a lot of things blinded for what is the current lifestyle of our
friend and relatives. This brings us to action, adapting and accepting their lifestyle
to force our self to be like one of them.
Scenario:
We tend to
forget our wants and needs, a good example of this is buying a new phone just
like your friend has when you checked his profile on her facebook account. You
immediately purchased a new phone replacing the old one which still working
fine, wasting your money just to experience the same experience of your friend.
A month later you failed to pay for the rent and cause you to borrow money
ending up unwanted debts. A week later the utility bills are filing up and you
are forced to sell the new phone you just purchased a month ago, and you find
yourself in a critical situation.
Prioritizing your Basic needs is one of the simple action
that may save you to future financial problems or debts.
It is not problem to fulfill your wants, as long as you are able
to analyze and answer these questions:
• Do I have the capability to pay?
• Do I really need it?
• Will it maximize my ability to produce larger income?
• Are there any chances that I can avail this in the future in a
much cheaper price?
• Will I able to maintain this? If yes how much it will cost me?
Identifying your
Lifestyle
In order for you to make the
final decision for your wants, you must know what is the lifestyle that you can
afford, in connection with this, you must know your S.A.L (Statement of Assets
and Liabilities) Or ask your Financial Manager. Knowing this can limit yourself
to any unwanted expenses, it will be the net base for your ability to afford
such things.
Tips:
- Think twice, analyze your wealth capability when affording for your wants
- Secure your needs and savings first before deciding for your wants
- Don't be fooled by the influence of the social media.
- Affording your wants can only satisfy you for a short period of time and rest is history.
- Ask help from your financial manager or a friend who is exercising financial management
- Discipline. Don't be shy to ask questions.
