Assignment 2 : Article 3

What are needs and wants? Needs are things we must have in order to survive such as food, water and shelter while wants are desires for goods and services we would like to have but there is no need for that. Many people get confused with their needs and wants. They tend to spend their money more on their wants than needs.

For an example, your salary might be RM1,500 but you buy a Honda Accord car which is obviously higher than your expenses, this is because your desire to have such luxury car whereas you could have choose a cheaper car such as Axia or Myvi based on your salary. In the end of the day, it is you who is going to suffer between the thin line of wants and needs.

These days average earning people have more debts such as credit cards, loans on furniture, car payment and also mortgage payment. Eventually, this leads to unstable financial and cost more debts in the future or even more worst ending up blacklisted. That does not mean that you are not allowed to spend on what you desire, but you should think wisely. So here is some tips on how to lower your spending and knowing your needs and wants :

1) Be happy with what you have

Always appreciate with what you are having right now. It can be a small house or an average car, that is okay. You can upgrade yourself anytime once are stable in your earning. 

2) Think before you buy

Always examine your to buy list. Ask yourself whether is this stuff necessary right now or does it provide any needs to you? Is there is no any satisfying answer then don't go for it. You can have it the next time.

3) Evaluate what you are currently spending on

Most of the things you are actually spending on are probably just wants. This is even true of many people have it such as latest phone or car. So if you are cutting off your budget then you need to remove all the wants you already have such as Netflix, gym membership, expensive restaurants, expensive smartphones and etc.

Spending your wants is okay but no one should go into debt for something they don't actually need in order to survive. Remember, be wise and smart!