Needs vs. Wants

Ever since I was a child, my parents have always stressed to me the importance of saving money, staying out of debt, and spending money on the right kinds of things.  Forums and devotionals are constantly being given here at BYU on budgeting and saving money.  At church there are a plethora of messages like "Many more people could ride out the storm-tossed waves in their economic lives if they had their year's supply of food and clothing and were debt free. Today we find that many have followed this counsel in reverse: they have at least a year's supply of debt and are food-free" (Thomas Monson).  With the total U.S. consumer debt (as of Dec 2011) at $2.5 trillion, it's no wonder why these kinds of financial messages are repeated on a frequent basis.  Americans like to spend money.  I guess that's kind of a no-brainer.  Who doesn't like to buy things? Especially when we are constantly bombarded with information on the latest-and-greatest-something-or-others that we absolutely must have if we want to be as hip, intelligent, or attractive as the people in the commercials.  With the ease of online shopping, it's just too easy to find yourselves wondering at the end of the month where all your money has gone.  And then you look around and realize that it went to that pair of boots with the fur, that swickety sweet lampshade, the angry birds 2 iPad app, or those tickets to Beauty and the Beast in 3D.

As I've been working on improving my personal budgeting skills I've realized that there's one important question to remember before making a purchase, and that is:  Is this something I need or something I want? And how do you decide that a want is worth spending money on?  You answer: Is this something I want just right now or will I still want this in x amount of days/months/years, etc? Another tip I've learned about budgeting from my personal and family finance professor is the acronym H.A.L.T. Which means, never spend money when you are hungry, angry, lonely, or tired. Pretty brilliant, huh?


Of course, being financially wise is easier said then done.  It requires a great deal of self-control/discipline. Lately I've been resisting the urge to spend money on a number of wants. So, I've decided to write down a list of my current/future wants so that I can better assess their potential value in my life.  Right now, I'm pretty determined that I will eventually own all of the following things, but one day, I'm sure I'm gonna look back on this list and be like, "Pah! What a foolish list of wants!".  Or maybe not.

1.  A pair of Roos

They have pockets

2. A fully functional, vintage typewriter

Retro

3. Matching pajamas

I mean, I always just wear shorts and a t-shirt

4. A guitar

People with guitars are just cool

5. A motorcycle

Not a Harley, something sporty

Okay, so some of the things on this list I couldn't actually buy right now even if I decided to give in to the impulse. But it's fun to imagine owning them.  I don't know why, but I'm currently obsessed with old school things.  I would be overjoyed to own and use a typewriter.  Makes no sense.  And, I'm determined to own a motorcycle one day.  Like, really. How sweet would that be? That would be Reese's peanut butter cup sweet.  So yep. That's the list.  Want 'em, but don't need 'em.  If only I could do this kind of reflection before every purchase.  Then I probably wouldn't have all this useless crap.... I kid, I kid.  But really, budgeting = important. Slowly, I'm getting better at it.  And that's my two-cents on financing. :)