Budgeting can help someone save money but for most people it doesn't because they plan to buy everything they want. In order to save money you might need to purchase only what you need [at that time] and instead buy them at a later date when you have money set aside for that purpose. Do you separate wants from needs when budgeting?
Yes, I do. What is needed versus what is wanted is most definitely a leasing factor when it comes to budgeting for me, and I feel like the same avenue of logic applies to others who budget too. A lot of the time the price of something will decrease when you wait too. Of course, it is a gamble, as this doesn't always happen. But when it does, it makes the purchase that much more delicious
I am at a stage where I am trying to live with the absolute minimum, as I have a greater plan that I would like to carry out over the next year. If I start accumulating too many things for my apartment, it will only be for some extra comfort. But since I don't want to live here for a long time, I now make do with only the bare necessities. Surprisingly, it's quite a liberating feeling for me. I like the space, the feeling of movement, the sense of endless possibilities in the air.
This is the toss up when you buy in bulk when something is on offer. In the long run you save money even if you don't need it straight away. I tend to still buy that way and I end up hoarding things. Now I try to buy enough for a couple of months rather than a years supply.
I have a problem with constantly buying things that I don't need just because I want it or I feel like bidding on it, but I enjoy spending money, so I keep doing it. I actually need to save money right now, but I have a hard time doing it.
I don't like to accumulate a lot of stuff. I have enough clutter as it is. I will buy what I want sometimes (mostly gadgets being a techno geek) like anybody esp since I love Amazon but I always think about how much I want something even though my mom pays the bills. I am not financially savvy though by any means so my problem is saving money when making a purchase. I get very overwhelmed when there's several stores that could have the same thing. I can't even look at google to compare prices. I think I've always had a weird aversion to numbers.
Yes, it can be hard, but you need to save up for what you really need. The best way is not to look at things especially online. Don't bid and limit your visits to ebay. I don't look at sites I used to anymore as I am no longer tempted. Think about the things you buy for the sake of it, then you have to buy a bigger storage chest to store things in or in the attic or basement. I am paying for storage and it stops me buying things I don't need knowing how much it costs to store things.
I’ve sort of worked things out so that my wants and needs mostly overlap, because I don’t like to accumulate a lot of physical possessions. If that makes any sense. But I’ve still got a few wants that aren’t strictly necessary, but are good for my well-being. I do account for those in my budget, and I try not to buy too many of them at once.
Having benefited greatly by learning to manage my finances at a very early age as well as being somewhat of a frugal sort - in that I always look at the most cost effective way of doing things before parting with any money - yes I do separate wants from needs - in fact so much so - that as my first priorities are always to make sure that there is enough money to pay for the roof over my head as well as to cover the cost of the various utilities and food - even if something is needed - I will only ever buy it if I have the money to do so - or put simply - if I can't afford something I don't buy it and will save for it instead. I would however just say - that although budgeting is an excellent tool for managing expenses and a particularly wise move for those in debt - as it helps to keep track of expenditure - I'm not so sure that I would agree that budgeting helps people save money - as it takes discipline to do that - in other words - even if someone had the best budget plan in the world - it would only work if the priorities were paid first and they didn't spend money allocated for other necessary things or money they didn't have.
@Theo, Yeah you're so right. It seems like I consider bidding and collecting items as a hobby that needs to be satisfied, lol. I'm pretty sure if I don't enjoy spending then I would get to save a lot. Well there's always room for improvement.
I totally do that. When I know that I need to start saving money, then I will start deciding if I need something or it's something that I just want. Right now since it's summer I don't have a job because my last one was at my college. So, I've been saving money and working online. That way if I don't need something then I don't buy it.
I do a lot of window shopping because the practice itself is fulfilling to me. Sometimes, I accumulate a huge amazon cart but my rule for amazon purchases is that I have to wait a full 24 hours if it's not an actual NEED. Most of the time, those items don't end up being purchased. Sometimes they go on a maybe list for later but often not even that. It is fun to consider what I'd buy on an unlimited budget with unlimited space. On a more practical level though, we live in limited space and even with unlimited money, I probably wouldn't actually buy those things. I find that if I'm going to splurge, I personally would rather spend on activities than on items.
I can't really afford "wants" right now and have to stick rigidly to "needs". I've got an essential major purchase looming (new boiler) so I've got to save really hard for that, it's going to set me back around £800. Once that's out of the way, I'll be looking forward to a bit of frivolous spending though!
