Financial Needs VS Wants: How To Spend Your Money Wisely

February 10, 2021 | June Mckaig

needs vs wants money spending

 

If you want to spend your money more wisely, there’s a much better way to do it than simply listing everything down on a budget. Instead, you can make your budget much more effective by separating your financial ‘needs’ from ‘wants’. That way, you can improve your decision-making about what you should or should not spend your hard-earned money on.

What’s The Difference Between A Need And A Want?

A financial need is something that you can’t survive without. Excellent examples of this include rent, food, and medications. Sure, you can find many ways to reduce these costs as best as possible, but they’re still things you have to pay for regardless.

On the other hand, a ’want’ is something that you would enjoy having, even though you could live without it. These are expenses that you’d typically categorize as leisure or entertainment expenses, for instance.

There’s nothing wrong with having a balance of both wants and financial needs in your monthly budget. After all, what’s the point of working hard to make money if you’re not going to enjoy it now and then?

But still, it’s important to distinguish between the things you can and can’t live without so that you can prioritize them accurately and make much better financial decisions overall. If there’s ever a time you have to reduce your spending, you’ll know which ‘wants’ you can sacrifice to spend more money on more urgent needs.

Some ‘Needs’ Are Actually ‘Wants’ In Disguise

Be careful, though! Sometimes, you may find a financial need in your monthly budget that’s a ‘want’ in disguise. Quite often, it’s easy to feel as if we won’t survive without these ‘needs’, even though the truth is that we can very easily choose to live without them.

What are some perfect examples?

Well, one of the most common examples is eating out at restaurants. Many people believe that this is a ‘need’ because it involves food, but that can’t be further from the truth. You can very well survive by cooking your meals and eating at home. That’s why groceries are a ‘need’ but eating out is more of a ‘want’.

Even your shopping list can feature plenty of ‘wants’ pretending to be ‘needs’. Junk food, candy, and alcohol may still be groceries, but let’s be honest, you can live without them if you needed to.

What About Saving And Investing?

At this point, you may be wondering where saving and investing fit into the grander scheme of things. After all, you can survive without saving your money in the bank or making any financial investments.

Well, saving and investing is somewhat of a grey area. On the one hand, doing these things will improve your overall financial health in the long term, making it a financial need. Still, you don’t want to overdo saving and investing to the point that it affects your other more immediate needs like paying rent and buying food.

 

car title cash

 

Financial Emergencies: An Urgent Need

An emergency is unique because it’s a financial need that goes straight to the top of your priority list. Not only are you unable to avoid paying for it, but you’ll also have to get your hands on quick cash to do so.

What is a possible solution for this financial need? Title loans from Mississippi.

What Is A Title Loan?

A title loan is a loan you receive when you use your vehicle’s title as collateral. It is basically a way of borrowing quick cash to pay for an urgent financial need. You’ll use a lien-free title of your vehicle to secure the money you want to borrow. That’s what makes it different from Mississippi payday loans – which can help if you don’t happen to own a vehicle.

The total amount that you can borrow – which is anything between $300-$2,500 – will depend on the value of your car.

What Are The Benefits Of Title Loans?

There are plenty of benefits to consider when getting a title loan. Some of those include:

  • Quick and painless application. The whole process will take as little as 30 minutes.
  • Minimal paperwork. To get started, you’ll just need a driver’s license or State-issued ID and the lien-free title to your car.
  • Your credit score doesn’t matter! Whether yours is low, high, or nonexistent, you can still apply for a title loan!
  • Keep your car! You’ll only need the title to your car to secure the loan. After you’ve brought your vehicle in for an inspection, you can continue driving the vehicle as usual.
  • No store visit required. You can give the loan representative a location and they will meet you!

How Do I Get A Title Loan?

The biggest benefit to our title loans is how quickly our process goes. Just follow this guide to learn more:

  1. Go to our website and fill in an application form.
  2. Wait for a representative to call you and set up an appointment. You can either give them a location to meet you or come into the nearest title loans location in Mississippi.
  3. The representative will meet up with you to check your documentation and inspect your car. Then, they’ll determine if you qualify for approval.
  4. If you’re approved, you can get the money you qualify for on the same day!

You can plan for almost any financial need. For emergencies, though, you’ll need a quick source of cash like a title loan. When that happens, there’s no better place to go than Mississippi Title Loans Inc.!

If you want to learn how to spend your money wisely, you’ll have to sit down and examine your spending habits. It is important to know what your financial needs and wants are. Once you know that, you will know exactly how to wisely spend your money.