When creating a spending plan and trying to live with limited funds, it's helpful to really consider what a need is and what a want is. What you define as needs and wants does not have to remain static.
Use the Needs vs. Wants Worksheet to write down some of your needs and wants-and then look carefully at what you've written down. Are the needs really needs, or can they be moved to the wants category?
Needs vs Wants Worksheet
Needs vs Wants
Now, review your list and think about what's really important to you and what has lasting value.
- Do you really need or want everything on your list? Put stars next to the items that are particularly important to you.
- Are some needs really wants? Cross off the least important wants.
- Decide if each item makes sense. If not, cross it off, or change it to something that is more reasonable.