Difference Between Need/wants/Desire!

The difference between need wants and desire is self-control.

 How many of us are able to categorize between three of them. This is very important in cut short of your monthly budget. So many software available nowadays to perpetuate your monthly budget but these software can only show you the data which you are providing.

I will tell you the way, how I used to work with my monthly budget. First, I used to pay all my debts like credit card bills,  house rent, insurance policy premium, EMI and then  from remaining amount do all my household expenses for a complete month and if still some amount remains was my saving for that month.

There was no ratio that how much amount I should spend and how much I should save.

Then one the day I calculate the difference between my income and expenditure and come to know that my savings are very low as compare to my earnings.

Then I have done some self-assessment and found Maslow’s Hierarchy of Needs that I have gone through in MBA.

                                           

I realized that if I have been working according to it then I would have saved 50 times more than what I have till now. If you are one of them then don't worry, "Better late than Never".

Follow the above pyramid, you should have a proper understanding between needs and wants. Once you would be able to segregate that then you will rock.

In the first column, we can see basic needs, which comes "Roti Kapda Makan" means food, water, clothes, and shelter is your need. I tried to make the concept clear and precise:

Need	Want	Desire
Eating food for survival	Eating pizza	Eating pizza in Dominos
Wearing clothes	Wearing jeans	Wearing jeans Levi's
Need house to live	Want a 3 bhk apartment	House in south Mumbai

Now we can check that how much amount we are spending on our needs and how much on wants and desires.

People are unable to define their requirements as per their financial responsibilities and status.

Suppose 1000 employees are working in a company and they all belong to different tradition, different background and responsibilities even their salary structures also vary as per their designations and departments.

We just noticed that one is drinking coffee in café coffee day and rest all of us try to follow them with closed eyes which leads to financial instability and disturbance. People think that if we will not drink with them then what they will think about us.

This is just a simple example but somewhere or other we all do the same thing.

I heard many times from my friends that on weekends we don’t eat at home, we dine out. So if you are spending 2K on dinner then you cannot say that it is your need as your need is just to eat food, not dining out.

Some people can misunderstand me and can say I am against forming a social circle. All of us think that, if we will not do such types of expenses or don't follow others then no one will talk to us and we would be isolated.

Friends you sit with yourself and give a thought that if you required anything in your bad times then would these people come with financial help without expecting anything in return.

So start making your budget for everything and do your savings at your level best.
It is the key to make your future safe and secure either for bad times, good times, children's education, or retirement planning.