Distinguishing between ‘needs’ and ‘wants’

Want

Need

Needs could be bills, debt repayments and other essential living costs, while wants might be things like eating out, holidays and new gadgets. Needs and wants can overlap, and it’s easy to lose sight of the difference between the two. For instance, we need housing, but we might want a larger home in a more desirable location; we need food, but we want to eat at a restaurant.
Have a look through some of your expenses, and work out which ones fall in each category. To help, ask yourself whether you need it to survive, or whether it’s something to make your way of living more enjoyable. If you need to reduce your spending, the ‘wants’ are where to start looking for changes you can make.