Wealth is Good
Cash Flow Is Better

Have you ever been at a grocery store, or better yet a toy store, when a child expresses a very strong desire to own an item for sale? If a parent ignores or outright refuses the
child’s request it could lead to a very noisy scene, possibly including some crying (sometimes by the parent but usually the child).

If you listen closely, you’ll notice that how a child cries when they want something is different from how they cry when they need something – for example when they’re hurt and need attention. You can tell the difference instinctively.

When it comes to adult purchases there are also wants vs. needs. For example, we all need shoes; but how many pairs do we really need? And do we really need to replace that perfectly fine 48-inch HD flat screen TV with the newly introduced curved screen model (at twice the price), at least right away?

So in your ongoing efforts to squeeze more money out of the monthly budget, when considering a purchase – especially a large purchase – ask yourself: “Is this a want or is it a need?” And even if it is a need, “Do I need it now or can it wait a month or two, or even longer?”

Keith Whelan is Cashflownavigator's founder and author of the "Wealth is Good, Cash Flow is Better" e-booklet. He is a graduate of Columbia University Business School, teaches at Rutgers University, and has over 30 years experience in the banking and financial services industry. Keith, his wife Cindy, and their two sons live in New Jersey.