What is a Need vs Want?
At its core, the difference between need vs want shapes how we spend, live, and make financial decisions. In today’s consumer-driven society, it’s easy to confuse the two, blurring the lines between essentials and desires. However, mastering this distinction is more than just a budgeting skill—it’s a mindset shift that can empower you to achieve financial stability, align your life with your goals, and focus on what truly matters.
By understanding the difference between needs vs wants, you can unlock a brighter financial future. Let’s explore the stories of Mariam and Zara, two professionals at the Central Bank of Nigeria (CBN), to see how this simple yet powerful concept impacts every aspect of life.
Defining Needs vs Wants
Before we dive into their stories, let’s clarify:
- Needs are essentials required for survival or basic well-being—things like food, housing, clothing, and transportation. Without these, daily life would be severely disrupted.
- Wants are non-essential items that enhance comfort, enjoyment, or luxury. They might make life more pleasurable, but they’re not necessary for survival or functionality.
For example:
- Need: A reliable car to get to work.
- Want: A luxury SUV with premium features.
- Need: A basic smartphone for communication.
- Want: The latest high-tech iPhone.
Understanding the need vs want distinction isn’t about deprivation—it’s about making intentional choices that prioritise your goals and values.
Mariam: A Model of Financial Wisdom
Mariam, a financial analyst, embodies the power of mastering needs vs wants. Her approach to money is simple yet effective: she asks herself before every purchase, “Is this a need or a fleeting want?”
Her financial strategy includes saving in gold through HC Gold, a platform for securing wealth in precious metals. Gold’s inflation-resistant properties gave her peace of mind and financial growth.
Here’s how Mariam applied the needs vs wants principle in her life:
- Transportation: She purchased a reliable used car instead of a luxury SUV.
- Housing: She opted for a modest apartment that met her needs.
- Dining: She cooked at home and redirected the savings toward investments.
- Technology: She stuck with her functional smartphone instead of upgrading to newer models.
By prioritising needs and being intentional about her wants, Mariam built financial security and was able to invest in real estate. Her lifestyle remained comfortable, but her choices allowed her to escape the paycheck-to-paycheck trap.
Zara: The Cost of Confusing Wants with Needs
Zara, a policy advisor at the same institution, struggled to distinguish between needs vs wants. She indulged in the latest gadgets, trendy clothing, and luxurious vacations, justifying her spending as rewards for hard work.
When she moved to Abuja, Zara rented an upscale apartment that consumed nearly half her salary, calling it a “need” for her comfort. She also financed a high-end car with features she rarely used, leaving her with little room for savings.
The Financial Divergence
A year later, Mariam and Zara’s financial situations painted starkly different pictures:
- Mariam had a growing portfolio of gold savings and real estate investments, providing her with stability and peace of mind.
- Zara was trapped in debt, struggling with car payments, high rent, and credit card bills. An unexpected medical expense forced her to take a loan, adding to her financial stress.
Their stories highlight why understanding needs vs wants is essential.
Why Needs vs Wants Matters
The distinction between need vs want affects every financial decision you make. Here’s what Mariam gained by mastering this principle:
- Financial Security: Her gold investments served as a hedge against inflation.
- Freedom to Invest: With fewer unnecessary expenses, she could grow her wealth.
- Reduced Stress: A clear financial strategy brought her peace of mind.
On the other hand, Zara’s unchecked spending on wants left her vulnerable, trapped in a cycle of debt and missed opportunities for growth.
How You Can Take Control
If you find yourself in Zara’s shoes, it’s not too late to change course. Start by asking yourself these reflective questions:
- Is this purchase essential, or am I indulging in a want?
- What could I cut back on to free up money for saving or investing?
- Does my spending align with my long-term goals?
- If I had to downsize tomorrow, what would I let go of?
- How can I make my money work for me?
- Are there people thriving with less than I have?
- What are the minimum requirements for a purposeful life in my context?
- What could I give up without impacting my quality of life?
- Do my spending habits reflect my core values?
- Am I discontent because I truly need more or because I envy others?
- If I had to move tomorrow, what would I leave behind?
- What is the emotional drive behind this purchase?
- Am I replacing a necessity or upgrading unnecessarily?
- Is there a more affordable alternative that meets the same need?
- Does this purchase align with the person I aspire to become?
Mariam often used these questions to guide her decisions, and they became the foundation of her financial success.
A Game-Changer: Arewaworld’s Wealth Mastery Course
Mariam credits much of her financial clarity to Arewaworld’s Wealth Mastery Course. The course taught her how to identify priorities, manage her money effectively, and build wealth through smart investments. It provided her with practical tools and strategies to make the most of her resources.
If Zara had taken the same course, her story might have been different. She could have learned to prioritize her needs over fleeting wants and used her income to build a stable future.
Choose Your Path
The difference between needs and wants isn’t just a financial concept; it’s a mindset that shapes how you live your life. Mariam’s story proves that with intentional choices, you can achieve financial freedom, reduce stress, and build a secure future. Zara’s experience serves as a cautionary tale about the risks of unchecked spending.
If you’re ready to take control of your financial future, start by mastering this essential distinction. Like Mariam, you can invest in your future with tools like HC Gold and gain deeper insights through Arewaworld’s Wealth Mastery Course.
The question is: Which path will you choose?
Also, ask yourself today: What is a need vs want in my life? The answer might just change everything.