Three Things to Consider As You Prioritize Your Want’s Versus Needs
The path to financial independence is riddled with obstacles and one of the most challenging ares is prioritizing your want’s versus your needs. When you want something it is a desire to possess or to do. A need, on the other hand, is when something is required or is deemed a necessity.
Food, water, shelter, sleep, all necessities. A down pillow to sleep on, lobster bisque to eat, sparkling water to drink, the Ritz Carlton for the weekend not necessities but depending on who you ask very desirable prospects to satisfy the basic necessities. The challenge you face as you are moving toward creating financial independence is how do you prioritize what is a want versus need for you personally. Sure there are the basics we all need but for each person there can be slightly different needs versus wants.
Let’s consider for example, your profession and dress requirements. If you work in a profession where you wear a uniform – the medical profession, law enforcement, the military, or the service industry you won’t need a large budget for a clothing allowance. However if you are in sales, fashion, public relations, the entertainment industry, or hold a position where you are working with the public on a daily basis and are considered the face of your organization then it is imperative for your professional success to have a larger budget for your clothing allowance. Thus turning what may be a want for some into a need for others.
Three things to consider as you prioritize your want’s versus your needs:
1. Know your end result: Where are you headed? How do you intend to get there? What is your timeline? Clarifying where you are headed, how you are going to get there, and what your timeline is will provide you a guide in discerning what is a need and what is a want for you personally. Your timeline is a pivotal component and your age plays a powerful role. If you are in your twenties you have more time to budget, invest, and many more years of earning potential then if you are in your 40’s, 50’s, or 60’s.
You also need to take into consideration who you are planing to support. Do you have a spouse, children, or extended family members that are counting on your financial contribution to maintain their standard of living? All of these areas need to be addressed as you clarify your end result.
2. Always live below your means: This is a foreign concept for many people. Living below your means happens when you have budgeted yourself to spend less money then you earn. And to save at least 10 % of what you earn before your living expenses.
3. Are you being realistic with your current circumstances: It’s important for you to be truthful and not wishful about exactly where you are today. You must be clear what your living expenses are, how much money you have coming in, and what you want to experience in the future, your end result. You must clarify where you are now in comparison to where you want to be and begin taking the necessary steps to move your in the direction of creating financial independence.
Creating financial independence doesn’t happen over night. It take clarity of purpose and dedication. For many of us we don’t know what it is we want or what our end result or we might know what we want but can’t seem to tap into the motivation we need to take action. To help you clarify your purpose and to tap into unprecedented motivation I have created Declare Your Financial Independence Training Program to give you the support, guidance, and motivation you need to have more time, more money, more freedom, and more adventure then you ever imagine possible! Click on this link for more information!