Wants

Wants summary:

• Wants are goods and services you'd enjoy having but aren't essential for your basic functioning.

• In today's world, it's easy to confuse needs with wants. 

• Wants can easily chip away at your monthly budget and keep you from getting ahead financially.

Wants definition and meaning

Wants are those goods and services you'd like to have or experience but can live without. They're desires, rather than things you need to survive. For example, food is a need. Dining out is a want. 

Key concept: Wants are possessions, services, and experiences you desire but can get by without. 

More about wants

It's easy to sound judgy when discussing needs vs. wants. When you want to buy a new shirt despite having dozens of shirts at home, that's a want. Even if the new shirt is in a color you don’t own yet. We've all been there. Wants make us feel good in the moment. Research shows that simply thinking about buying something you want releases a series of feel-good hormones. 

Only later, possibly when you have less money for other goals, do you realize you've cut it close and question your decision to buy the shirt. It takes time and practice, but it's possible to train yourself to spot the difference between a need and a want. Eventually, you could get the same dopamine rush from saving money as you used to get from spending it. 

Wants: a comprehensive breakdown

Some wants are easier to identify. For example, we know that premium gym memberships, subscription streaming services, and nice vacations are wants. However, when some things make life more convenient or enhance our social standing, or when it’s something you’ve always had, it's easy to think they're actually needs. Here are a few examples:

• Owning a car in a city with reliable public transportation 

• Tech gadgets, including smartphones, tablets, and smart glasses 

• Brand-name clothing and accessories 

• High-end kitchen appliances 

• Private school tuition

• A destination vacation 

It's natural to want nice things and memorable experiences. But there may be even greater satisfaction and peace in knowing your financial goals are on track (or have been met).

Training yourself to identify needs from wants is possible. These steps may help you get started: 

• Be honest. The moment you notice something you want, ask yourself what would happen if you didn't buy it. Will it impact your ability to work or remain healthy? If the answer is no, it's probably a want. 

• Consider alternatives. Once you take a close look at a product, you may be surprised by how many less expensive but similar (or identical) options exist. The internet makes it easy to search for less costly alternatives to just about anything you buy. 

• Keep your goals front and center. One trick for training yourself to enjoy saving as much as spending is to make a list of your goals, short-term, mid-term, and long-term. Remind yourself of those goals daily. If you forgo a purchase you wanted so you could instead put that money in your goal bucket, you have something to be excited about. 

There's nothing wrong with wanting things. It's pretty much the way we're made. However, personal finances can fall out of balance when wants become as important as needs. Fortunately, you have it within your power to set things straight—one decision at a time.