We all instinctively know the difference between healthy and unhealthy spending. But what's the basis of knowing this?
It's knowing the difference between our wants and our needs.
Needs are the necessities that are essential for our survival. Wants, on the other hand, are our desires that we want to fulfil for our comfort and pleasure.
Does this mean that we should not pursue our wants? Not at all! Instead of chasing just our desires or only our needs, our goal should be to bring a balance between the two.
Prioritizing between our needs and wants is the key to developing health spending habits.