Understanding the difference between needs and wants is another key to successful money management.
You can go beyond identifying things as needs or wants and be specific about why you choose to make a purchase.
For example, let’s look at car insurance:
Is it a need or a want? It’s a need.
Why? Because it is required.
What is the cost? For example: $900 per year.
Are there alternatives? Check with your insurance agent.
In this needs and wants worksheet, you can look more closely at expenses and decide if there is an alternative that will work for you or help you spend less.