“I need it” thinking
“I need it” thinking can be dangerous.
Dangerous because it is occasionally true. But more often, we’ve simply confused our wants with our needs, resulting in more money flowing out and new “needs” sprouting up.
Needs usually fall along a scale. Food can be a matter of life or death, but usually the choice is between dining out and preparing food at home. That new tool or gadget might make your job easier, but you could probably make do just as well without it.
Sometimes the truth is dangerous
“I need it” thinking is most dangerous when it’s actually true. Sometimes we really do need something like parts for an unreliable car and the money isn’t there to buy it. Sometimes the solution is to buy it on credit, but that is a dangerous strategy.
More often, the wiser route is to:
- find the money (extra job)
- alleviate the need (borrow it, or find a substitute)
- eliminate the need (sell the unreliable car and take the bus)
Rationalizing a purchase is always dangerous if we’re spending money we don’t have. The real issue is “can I afford this,” not “do I need it.”
Have you ever fallen for “I need it” thinking? I did yesterday. Even though I could afford it, my visit to Half Price Books cost me dearly, falling just shy of three hundred bucks!
If you make a habit of ignoring “I need it” thinking, you’ll make better decisions and end up with your money working for you which is one example of good financial sense.
Frugal Dad remarked on April 5th, 2008
Identifying the differences in “needs” and “wants” is really step one in financial maturity. Nice article!
Aaron Stroud remarked on April 5th, 2008
Thanks Frugal Dad. It might be the first step in financial maturity. But as you know, that certainly doesn’t mean it’s easy for us to learn as children or as adults. Even when we can distinguish between the two, it can still be tricky to make the right choice.
hank remarked on April 6th, 2008
I’ve used the “I need it” for too many things in my day; but since I’ve started blogging I have really learned to look deeper at what I really am NEEDING. I think of bigger purchases like that a lot to convince me to go forward with it. Most recently a new car, conveniently though I was able to ditch the notion and realize I really DIDN’T need a new car, but just WANTED one… Car forgotten…
Aaron Stroud remarked on April 6th, 2008
Blogging takes a lot of time which might be another reason why it helps pf bloggers control their spending. It’s hard to go out and spend money when you’re stuck working in front of the computer.