Keep Your Wants Vs. Needs in Check

Identifying the difference between the things you want and what you really need is very important when considering your budget for the new year. There are plenty of clever tips to make the process more rewards and less daunting.

These suggestions may change your perspective of “want” and “need” entirely.

Identify a dollar value for your time
In determining your actual salary you should account for taxes, employer-sponsored benefits, the time you spend on the computer and even your commute to work.

This make up the value of your time spent working that ultimately results in your expendable hourly wage. When you put a solid number on the hourly value of your time, it can even help you to prioritize the commitments you make in your personal life, how you spend your free time and those choices often contribue to the overall quality of life.

Expenses that you can bring “in-house”
Your time has a tangible value, but most likely there is at least one task we can take on ourselves to cut costs. For example, you may determine if it’s worth it to spend more on dry cleaning, car maintenance or pet sitting. A DIY (Do It Yourself) approach will have you saving money in the long run and the intangible value of being proud of the things you accomplish is priceless.

Comparing yourself to others
“Keeping up the with Jonses” is often a skewed perspective of wants and needs. You can use this principle towards your finances that work to your benefit – if you choose your influences carefully. Consider evaluating where you money is being spent and if you feel like it’s a bit excessive then it may be time in re-evaluate.

Decluttering your home
Having too much clutter in your home, desk, closet and car has a tendency to clutter your mental perspective of wants and needs. Before you buy one more  items consider the items you have already have right under your nose.

If you need some inspiration, commit to removing three unwanted items a day for 30 days and vow to not buy anything new until it’s complete. You will soon realize just how much unnecessary stuff you already have and you  might also find that you’ve got more items you could put to use than you realized.

Mentally commit to a smaller space
The more space you have, the easier it is to accumulate unnecessary items. Instead of disregarding your own home or spending money of oversized storage bins, try simulating what it would be like to live with half the amount of space in order to see what you need to live a full life. Challenging yourself to simplify your living space will allow you to see how much “stuff” is weighing you and your wallet down.

How have you found ways to organize while saving money? Leave us a comment below or on Facebook (click here)!

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