Need vs Want

It's been an interesting couple of weeks.  The majority of discussions I've had somehow involve money.  The basic question, "how do I save?".  All the way to, "why do they charge so much?!".  So I thought I'd do a quick breakdown to these questions.

Just so you all don't think I'm a financial saint I want to give you some history.  When I was in college a nice gentleman (aka: moron) agreed to giving me a credit card.  At that time the Fairfield Mall in Beavercreek, OH had just been built.  What is a girl to do during her 3 hour break between classes, but go shopping?!  At the crisp age of 20 I had over $8,000 in credit card debt.      I came home from class one day to find my dad had opened my mail and my credit card bill was on the kitchen table with the balance circled and a note that said, "don't go anywhere, we need to talk."  Oh holy crap.  This was it.  My dad was truly going to kill me.  I knew I had driven him crazy as a teenager, but this time I was sure I had thrown him completely over the edge.  Instead he sat me down, explained the severity, and created a game plan on how to pay it off.  That summer I worked two jobs, Cub Foods and Kettering Rec Center.  I would go from one to another.  I even worked third shift at Cubs because it paid a whole .50¢ more per hour.  I finally paid it off and have never been in debt to a credit card company again.  Oh, and yes, that was the worst summer of my life.

Saving money has always been a constant topic in my family.  Since I was a kid my father preached to the heavens about how important it was to be debt free and save for retirement.  Up until the past 8 years, I never fully understood the concept.  I just knew I was saving money, but it never fully sunk in as to why.  Now that I am approaching my forties (that just about made me puke), the realization of retirement is becoming ever more clear.  There is a light, dim as it may be, at the end of this long tunnel.  

Here is the basic principle of money.  Don't spend what you don't have.  I can hear the screams now.... "BUT!!"  Yes, I know, you NEED that 10th pair of $115 Buckle jeans, and you NEED to add to your collection of Coach handbags.... just like I NEED to eat Esther Price candy.  No, no I don't.  You see, your addiction to spending is just like my addiction to food.  You put a bag of Oreo cookies in front of me and you can kiss them goodbye.  What's the best way to kick the habit?  Write every penny that you spend down.  I don't care if you gave your son a quarter for a gumball.  Write.  It.  Down. Do this for 30 days and then tally it all up.  Holy crap!  That's a whole lot of money, huh?  The biggest question I try to ask myself is, "do I NEED this or do I just WANT this?"  

Let's be honest, I own a lake house.  I wanted it.  I own a boat.  I wanted it. For both of these items I created clear goals in order to achieve them.  I knew when I was 25 that I wanted to one day own lake property.  Every week I put aside money in my "goal fund" so that one day I would have enough money for the down payment.  I bought my lake house when I was 33.  Once I bought the house I knew I needed a boat.  Again, I set the goal and I worked to achieve it.  For two years I saved by cutting coupons, shopping for clothes at Target and Goodwill, and pretty much became a homebody during the winter months.  At 35 I bought a pontoon, paid in full.  

How do you know a need from a want?  You need water, electricity, a roof over your head, healthcare, etc...  You want to eat out daily, purchase more shoes, purses, and clothing than you really need.  Just like I need to eat more vegetable, but I want to eat ice cream.  Get it?  And let's be clear, we all make mistakes.  Whether it's on a diet or saving money.  I do eat ice cream.  And you will spend too much sometimes.  But luckily, every minute is a new beginning.