5 Day Budget Makeover Series Transcription – Day 2 – Needs vs Wants

Hey, thanks for coming back, I love budgeting so much, I hope you’re starting to love budgeting just as much as I am. I promise that when your budget works like a well oiled machine and you are reaching your goals, you will think budgeting is this cool too. I promise. Okay, so the next thing that we are going to do, now that we know the facts, we’re going to split those facts into needs and wants. Now, just because you spent $200.00 on clothing last month, that’s a fact, but that doesn’t mean that we necessarily need to put $200.00 into the budget for clothing moving forwards. So we’re going to dissect your list of facts into needs and wants. I want you to get two colors of highlighters. Or, if you don’t have that and you’ve got kids around, find some crayons. You know you can find those, right? And I want you to decide which color is for needs and which color is for wants. Go through your list and highlight the needs and wants. Now, in this lesson it’s very important for you to look through the lens of someone else when deciding if something is actually a need. People will tell me all the time that they NEED this or they NEED that… but they don’t. They have created their life to WANT things SO BADLY that they NEED it… but they don’t actually need it. So be careful when going through this list. I would also encourage you to share your results with a friend or a family member, or maybe your partner and see if they agree with the needs and wants. Now you know what’s going to be coming next. We may have to take out some of those wants. So be very clear when you are choosing what’s a need and what’s a want? This should take you no more than ten minutes.