in terms of financial planning You need to be able to differentiate between needs and desires to keep your finances going. These two things are often difficult to prioritize. Especially when they just received their paycheck. Because some people feel that they have a lot of desires that must be fulfilled. but confused about how to divide their priorities with the necessities of life
Everyone must understand the difference between wants and needs. Especially this is very important to know. because it relates to financial planning Therefore, consider the differences and methods of management.
Differences in Financial Planning Needs and Needs
need is something (products or services) that must be fulfilled and prioritized because if you don’t can interfere with survival while desire is something (products or services) that really do not need to be accomplished. Because it is not urgent and will not interfere with survival.
from the above understanding It can be said that desire is really binding. because it is related to life But desires do not need to be fulfilled as a priority. Consider the differences between needs and financial planning needs in the following descriptions.
difference by nature
Differences in wants and needs can be seen naturally. In the previous description Demand has a purpose In other words, priorities need to be prioritized before results can be achieved. so as not to interfere with daily life, for example clothing (clothes), food and food (housing).
Imagine if you couldn’t fulfill these three needs. Will you still be able to live a good life? It’s not just about meeting or not. financial planning May be disturbed if priorities are not possible.
Contrary to desire that is often subjective, it is not necessary to satisfy that need because it does not interfere with survival, for example. hang out, Buy branded merchandise, watch concerts, and more if you can’t control yourself. Your finances will collapse later.
when considering in terms of time The difference between want and need is very clear. A need is something that must be met immediately, whether you like it or not, it must be prioritized. You shouldn’t buy time Let alone cut out your needs if you don’t want your financial situation to deteriorate. especially in the middle of the month
then according to the time Desires can appear at any time. It could be even while watching television. Then you see a celebrity carrying a brand name bag worth millions of rupiah and suddenly you want it too.
You can say that the desire arises for no time, but suddenly disappears because of the sudden. she doesn’t remember This is in contrast to the need that usually appears on a monthly basis or when certain symptoms occur.
Desires can arise from desires.
It is important to know that desires can arise from desires. This is something most people don’t know because they don’t feel that it could cause someone to be suddenly extravagant or spend more money to meet these needs and desires.
An example from everyday life is food. Eating is a necessity that must be met in order not to feel hungry, so any dish is the same. Because the goal is to fill the stomach. However, to meet these needs Food choices will be different, for example hungry but wanting to eat in a five-star restaurant. Even if the goal is to fill the stomach as well.
That is why demand can arise due to demand. This usually happens because all humans have different tastes. Therefore, the needs that come out are adapted to the needs of each person, even if the goals are the same.
difference by function
The difference between needs and desires can be seen in work or in every action. For example, everyone wants to eat when he is hungry, so really any food can still satisfy the need for satiety.
But in meeting these needs Everyone wants to satisfy himself by choosing the food he likes. This is what is called desire. same function But each person has his or her own tastes to satisfy his or her needs.
Another vivid example of everyday desire is when you intend to go to a concert of your favorite musician. As its function is only the desire to satisfy and please the heart. but in terms of demand These activities only cost money and momentary satisfaction. (Especially if you don’t have enough savings)
Therefore, according to its function You must know how to manage the extra money that is allocated to meet your needs. still need to be counted Finances will not be messed up. You can try. challenge It’s fun to save money to set aside money.
Tips for deciding financial planning needs and needs
It turns out that many people are still confused in deciding their own wants and needs when planning their finances. Although this must be known before you can control your finances not to get stuck in a life that is sufficient and difficult to maintain.
If you still have problems in financial planning Read on for tips on making the right financial planning needs and needs below!
1. Don’t be lazy with the trend or FOMO.
The secret to deciding which needs and wants first is to never get tired of following the trend. alias have FOMO properties (afraid to miss) or fear of being abandoned by others The trend will never end if we try to keep up. It’s not always something we have to keep track of.
Constantly following endless trends will exhaust you. So you shouldn’t be too rushed to do it. Even if you miss the latest trends But it’s not something to regret because it’s not an important thing to do. Not following all the time will not make life difficult. right?
Also, try to be more selective if you want to keep up with the latest trends. Pay attention first to whether your needs are being met properly. Also avoid FOMO for the negative.
2. Prioritize needs
for whatever reason Always prioritize the necessities of life. because if the needs are met correctly Life is more peaceful than nothing financial planning Whatever. How to prioritize needs starts with an interest in meeting the need for clothing, food and housing.
in financial planning Prioritize the amount of money you need so that you don’t exceed your income. The goal is to make life more organized and smarter in spending money.
3. Pay attention to urgency
on the second point to prioritize something It is also necessary to pay attention to how urgent it is. If you are urgently needed, priorities such as debt or installment payments should be prioritized so that future financial planning is not disrupted.
Be smart in determining the level of importance. Sorted from most urgent to least necessary. Doing this might sound trivial. But it will make it easier for you to plan your finances.
4. Accumulate savings and emergency funds first.
The secret to deciding your next needs and desires is that before you do anything, always keep your savings and emergency funds in check. Savings and emergency funds are very useful in saving lives in the future, for example, to fulfill a wish or meet urgent needs at any time.
So try to save and fund at least 20-30% of your basic income. So when you want to decide on your needs and wants. It will be much easier because you already have a reserve fund in the form of savings.
Having the basic ability to differentiate needs from needs It is especially helpful to prepare for better financial planning. not only that Being able to differentiate between the two is helpful to make each person smarter before spending money.