Before you spend money, consider if the purchase is a “need” or a “want”. Paying the utility bill is a need, and buying food is a need, but buying fast food for lunch every day is a want. If we over-spend on the “want” items, we run the risk of not having enough money to provide for our needs. Before you spend money, ask yourself “is this a want or a need?”
This is a very simple budgeting system that has been around for a long time, but today, with the use of credit, this system is becoming a thing of the past. For more information see my article on Understanding Needs and Wants.
Today’s Tip courtesy of Scott Schaefer, Kitchener, Ontario Bankruptcy Trustee
