Where Does Your Money Go?

It’s easy to get caught up in the day-to-day.

You see something you like. You buy it.

Before you know it, your money’s gone and you’re wondering where it all went.

One way to get a handle on your spending is to look at the difference between ‘wants’ and ‘needs’.

It’s a simple idea, but it can make a big difference to your savings.

When you can sort what you really need from those tempting extras, you’re taking a big step towards financial control.

The Money Part: Understanding the Difference

• Needs: These are essential for survival and well-being. They include things like rent, food, utilities, and basic transportation.
• Wants: These are things you desire but aren’t essential. They include things like eating out, entertainment, and non-essential shopping.

By identifying your needs and wants, you can prioritise your spending and make smarter choices with your money.

This isn’t about denying yourself everything. It’s about being mindful.

The Real Life Part: Feeling in Control of Your Spending

Knowing that every pound you spend is going towards something that truly matters brings a sense of calm and confidence.

You’re not wasting money on impulse buys or things you don’t really need.

This can lead to enjoying the simple things more, like a home-cooked meal or a walk in the park.

Finding satisfaction in what you have and making conscious choices about what you spend is a rewarding experience.

• Mindful Spending: Being aware of your spending habits helps you make better choices.
• Prioritising Essentials: Focusing on needs ensures your basic necessities are covered.
• Reducing Impulses: Learning to distinguish between wants and needs can help you resist impulse purchases.

Learning to tell the difference between wants and needs isn’t always easy.

Sometimes, a ‘want’ can feel like a ‘need’, especially when you’re feeling stressed or overwhelmed.

The pressure of advertising and social media can blur the lines too.

But, with practice, it becomes easier to make those distinctions.

Tips:

• Make a list of your expenses and categorise them as wants or needs.
• Before making a purchase, ask yourself if it’s a want or a need.
• Set a budget for your wants and stick to it.
• Celebrate small wins when you manage to avoid impulse buying.

Taking control of your spending is a journey, not a destination.

With a little practice, you’ll find it easier to make smart choices and save more money.

It’s about building a sustainable approach to your finances.