Remembering the Difference between Needs and Wants

Experiencing the past few years has brought a wealth of financial lessons to all of us. Understanding the significance of having an emergency fund, securing unemployment benefits, and staying informed are all crucial takeaways. One important aspect to reflect on is the amount of money typically spent on impulsive purchases and luxuries during times of staying at home. It’s likely that you spent less for various reasons, such as having a tighter budget or fewer opportunities to go out. It is advisable to maintain this restraint even as circumstances return to normalcy.

We are all familiar with the allure of impulsive spending. Whether it’s trying a new restaurant, purchasing a new video game, or socializing with friends, it’s understandable to indulge in these desires occasionally, as long as your essential needs are met. However, it requires strong willpower to resist the urge to spend when it is not prudent. The pandemic has served as a clear reminder of the benefits of refraining from unnecessary expenditures: having more savings for the future or allocating funds to more critical matters.

While it’s uncertain when life will resume its normal course, it is inevitable that it will happen eventually. When that moment arrives, you might be eager to splurge and contribute to boosting the economy through your hobbies and interests. Nevertheless, it is essential to remember that living without frivolous spending is achievable. Keep this realization in mind when the urge to splurge arises.