looking at bills and credit cards

More than 90% of adults recently surveyed by Wells Fargo said they want to be more intentional and thoughtful about their spending.

I am here for that!

I also have a simple tool to help you do just that.

Every time you are about to buy something, whether it be $10 or $1,000, stop and ask yourself:

Is this a need or a want?

Every time, do you hear me?

And here’s how to proceed:

If It’s a Want

If you are really serious about reining in your spending, my advice is to forego spending on wants. Or build in guardrails: I will spend only $X a week on wants. Either way, by stopping and identifying a potential purchase as a “want,” you are elevating it as a potential source of saving. Either by forgoing the purchase entirely, or opting for a less expensive option.

If It’s a Need

Now let’s talk about needs. Even with needs, you might be able to reduce your spending. The less expensive brand—whether it be food or clothing—meets your needs and can save you money. And it’s even more in play for huge expenses, such as buying a car or a home (or the place you decide to rent). A car to get to work is a need. As is shelter. But what you choose to spend on both is up to you. Asking yourself if you might be able to fulfill the need and spend 10%, 15%, or 20% less can transform your finances.

If you are serious about being more focused on your spending, my Need v. Want test is guaranteed to help you pay more attention to how and when you choose to spend money.

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