The difference between “necessities” and “desires”

One of the most confusing aspects as it relates to expenses is to be able to differentiate between “necessities” and “desires”.

There are some things which we clearly need. We need to eat food, drink water and sleep. But do we need to purchase organic vegetables at Yarkan or is Rami Levi good enough? Depends who you ask.

Many people need a car, but is a new car necessary or is a used one good enough?

There is a fine line between a “necessity” and a “desire”. Marketing experts work hard to convince us we need a product rather than merely desire it. Financial, social and other circumstances are also often in flux which further complicates the “necessity” vs “desire” debate.

It is important to ask ourselves before purchasing an item, if we genuinely need it or just merely want it. Asking that simple question is half the battle of managing our finances.