When you’re creating your budget you should consider things like “needs vs. wants.”
Each of us has some common things that we require or need to live. These items are called needs. Examples of basic needs include food, water, and shelter. And for many students, those needs may be different at different times in our life, such as when we retire, lose a job, get a divorce, or get sick and can’t work.
Besides basic needs, you have other things that you use and buy. These “extras” make our lives more enjoyable and comfortable. They often are things you’d love to have but could do without if you don’t have the money to buy them. These items are called wants. Some examples are eating out, having a manicure, a new bicycle, a CD player, designer clothes, or going to movies.
Although an item may be a need, it’s still important to budget. For example, a student may need a computer to get school work done. However, the type of computer may be up for debate (laptop vs desktop or brand may make the purchase more expensive).
So - what items in your budget are great to have, but not necessary?