Hey there, fellow Latinas on a money journey! I want to dive into a topic that can be a real game-changer in your financial life. We’re about to unravel the mystery of distinguishing between needs, wants, and the gray areas in your expenses.
You see, one of the very first steps in creating a money plan for yourself is assessing your spending habits. It all begins with a simple but profound question: What are your needs, and what are your wants? But wait, what exactly do these terms mean?
Needs
Needs are those essential expenses that you simply can’t do without. They’re the things you need for survival and to stay on the right side of various obligations. Think about taxes, insurance, rent or mortgage, groceries, and other basic necessities. These are non-negotiables.
Discretionary Expenses
On the flip side, we have discretionary expenses. These are the fun things that add color and dopamine to your life. They’re the spending categories that often make you smile, like dining out, traveling, engaging in hobbies, and other enjoyable experiences.
Now, here’s where things get intriguing. There’s a gray area where some expenses appear discretionary on the surface but, for many, are actually needs when you delve deeper. These are the areas where intentions matter a lot. Let me illustrate this with a few examples:
- Massage: At first glance, it might seem like a luxury. However, for many, it’s an investment in their health, a way to heal tight muscles, and a path to physical well-being.
- Spa Days at the Korean Bathhouse: While it involves pampering, it’s not just about cleaning the body but also a means to alleviate anxiety and mental stress.
- Expensive Supplements: These supplements may appear costly, but for some, they are the only solution that works for their unique health needs.
It’s subjective
The key takeaway here is that these categories aren’t one-size-fits-all. What might be a want for one person could be a need for another, and that’s perfectly okay. We all have diverse priorities, preferences, and values, and our spending reflects that individuality.
Now, if you find yourself struggling to categorize your expenses or determine where specific items belong, I encourage you to consider exploring 1:1 private coaching with me. Schedule a clarity call, and let’s discover if we’re a good fit. Feel free to DM me or check out the link in my bio.
Remember, your needs, wants, and gray areas are part of your unique money puzzle. Deciphering it is a step toward financial empowerment, and I’m here to support you every step of the way.