The Pandemic Is a Perfect Time to Revisit the Differences Between “Wants and Needs” - Slimmer Payments

The Pandemic Is a Perfect Time to Revisit the Differences Between “Wants and Needs”

One of the basic skills of achieving personal financial freedom and build wealth is to understand the fundamental distinction between “wants,” and “needs.”  When times are good, it’s easy to lose sight of the differences. Frivolous spending is an easy trap to fall into. However, in light of the current pandemic, many of us have had an unfortunate real-world opportunity to revisit the distinction between the things we want and the things we really do need.

Most people I know, even those whose finances have remained relatively unscathed, have cut back since March. For those experiencing job loss or reduced income due to COVID-19, budgeting and taking a long hard look at needs and wants has become a way of life.

Distinguishing Between Wants and Needs

Sometimes it takes something as devastating as a global pandemic to remind us that the difference. The only things you need are a place to live, a certain amount of clothing, and food and water. Everything else is simply a “want,” or something that can make life a little more enjoyable, but not anything you can’t live without.

Once you become better at differentiating between wants and needs, most people come to the same inescapable conclusion. You almost certainly “need” less than you think. You’ve probably been able to fulfill more of your wants and desires than you realized.

I have heard many people say that a “silver lining” in the pandemic has been the opportunity to spend more time with their families and to refocus on the things that really matter in life.

That also applies to our financial health and well-being. One day we will get through this, and we will be back on track to achieving your personal financial goals. In the years ahead, when the virus is long behind us, any time you are tempted to spend beyond your means, think back to the freedom you felt when scaling back in the COVID-years. Remember the lesson that you learned in realizing how much less you really needed, to experience happiness and enjoy life!

How have you scaled back during the pandemic? Have you realized how much you could live without? Please reply using the comments below.

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