Cut the Costs and Keep the Change: Part 1

As I looked at our budget to see where else we could cut costs to save more money, there was 1 thing I had to constantly be asking myself.  Is this a NEED or a WANT.  I had to do some searching within myself, but I realized that we had a lot of wants labeled as needs.  So the first this that you have to do if you are looking to cut the costs in your home is to know what is a NEED and what is a WANT.

To do this you have to first define what a NEED is and what a WANT is.  This is how I defined them and I think this is probably the best way to look at them if you are trying to cut costs.

NEEDS: those items that are necessary to sustain.  This includes Shelter, Food, Clothing, and Transportation.

WANTS: those things that enhance or improve family life.

When you look at life this way you are able to see a lot in your budget or monthly expenses that you can cut out or cut down to make excess money appear.  There are also things you can do within the NEEDS category to cut the costs.  This helps you to bring your costs to a minimum.  If you are trying to cut out debt or saving for something, these things can be especially helpful to maximize your efforts.

Take a look at your life and try with every purchase to ask yourself “Is this a NEED or a WANT?  Do I really NEED the item?  Is it worth the amount I will pay?  Can I afford This?  Is there anything better I can do with this money?  Have I compared other prices and am I knowledgeable about the purchase?  Asking yourself all these questions will really weed out the NEEDS and WANTS.  You will be surprised how many things you will find you can do without or nee less of to sustain yourself.