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Needs vs. Wants

The end of the year is approaching and many of us are taking advantage of discounts and promotions. Throughout the entire holiday shopping season retailers compete for our dollars. Naturally this presents an opportunity to minimize the impact of shopping on your bank account, but can also be a challenge to reining on our spending.

Want vs NeedThe key is to not get swept away with all the deals and be mindful of your needs vs. your wants. When shopping this holiday season ask yourself if the things you’re considering to buy are discretionary purchases, necessities, or simply a luxury? Here are a few tips to help you stay disciplined with your spending when shopping for the holidays:

1) Consider treating yourself to only one “want” this year. Everything else should be a “need”, no matter how good of a deal it is you’ll have the same opportunity to buy more stuff at a discount next year.

2) Make a list of the gifts you plan to buy for others and stick to it. Just because there’s additional item on sale that you’d like to give someone doesn’t mean you have to buy it. Whatever happened to it’s the thought that counts, thinking of them in the first place and buying the original present is what matters most.

3) If your want is a big ticket item consider saving for it in advance. Chances are you can forgo purchasing it this year and instead begin putting money aside each month so that you can better afford it next year.

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