It’s a simple question: Is it something you NEED or something you WANT? Before you buy something ask yourself “Do I really NEED this? In our society we often get confused about this. We believe we really NEED a new car, HD tv, a new dress, or a trip to Las Vegas. We may not even bother to question the validity of our assumptions. But that’s an easy way to overspend and get into financial difficulties. What you REALLY NEED, in addition to a place to live and food to eat, is a cash reserve, savings and investments.
I realize that living in a survival or necessity mode may not be all that pleasant. And I’m not saying you shouldn’t “splurge” once in a while. You may want to surprise your wife, friends, or indulge yourself occasionally. Just don’t make everyday a special occasion. Otherwise “special” won’t mean much.
We may fall into thought patterns and practices that don’t serve our financial security well, and temptations abound. By using this simple technique we can make better financial decisions. Remember to ask yourself: “Do I really NEED this?”
