Needs vs. Wants

Photo Credit: jomurphey.blogspot.com

So you've chosen your ideal summer job, nailed your interview, and start next week. Score! On top of gaining valuable skills to carry on throughout your life, working a summer job means more money for trips, summer clothes, and outings with friends. It welcomes the opportunity to become more independent, providing for yourself more than ever before. What better way to spend the free time that summer brings?

It’s important to remember, though, that with money and financial independence comes more responsibility. Create a budget, outlining your expenses and deciding how much you’ll have to spend and how much you need to save. After all, wouldn't it be wonderful to go off to college or into the next school year with something to show for the hard work you did this summer? Saving is important, and the only way to save is to set saving goals and be smart about your spending. Determine needs versus wants.

Needs are things you can’t afford to live without. Traditional needs include:

·         Transportation (gas)

·         Bills

·         Food

·         Basic clothing

·         Toiletries

·         Saving

Before you spend leisurely, make sure you've taken care of your needs first. Does your cell phone bill need to be paid? Set that money aside as soon as you receive a paycheck. Running low on toiletries? Take care of that, too. Filling up your gas tank also prevents you from having to spend money repeatedly on frequent trips to the gas station. And before everything, make sure you've set your savings aside. Opening a savings account gives you the opportunity to transfer to your savings every paycheck, and commit to not touching that money until you've reached your saving goal or absolutely need it.

Wants are expenses that you could live without. Do you really need that $5 latte every morning before work? Do you have to go to a restaurant every day, or could you wake up a few minutes early and pack your lunch? Is that new outfit a necessity, or could you mix and match items in your closet to create something totally new?

Explore ways to cut down on your wants, or agree to spend less in one area in order to enjoy something else. Examples include:

• ·         Packing your lunch every day for a week if you know you’re taking a road trip with friends that weekend
• ·         Opting out of buying  new shoes if you know you’re doing dinner and a movie after work
• ·         Deciding which new album to buy with one paycheck, and waiting for the next check to purchase the other

Part of being responsible is spending responsibly. Create a budget before the money starts flowing in, and watch how you’ll be able to control your spending while still enjoying everything we love about summertime!