Covering the basics...I need, I want, I buy.

(Brought to you by the unveiling of the Macbook Air...thanks again, Steve Jobs.)

Necessities can be a very subjective topic. Something seemingly crucial to me may be categorized as a frivolous purchase to my neighbor. I’ve been thinking about needs versus wants a lot lately as I prepare to start budgeting for law school and other lifestyle changes as J graduates from college and we move in together.

Usually my stream of consciousness goes something like this, “I NEED new jeans, I WANT William Rasts. William Rasts are $220 on the website and at Nordstrom. But if I buy them on eBay I can save $100, and I still get my high-quality designer denim and don’t have to settle for $80 Abercrombie jeans that will last half as long.” I try not to sacrifice my brand loyalty whenever possible. This is because I prefer to pay more up front for a product I know and trust, particularly when a warranty or buyer protection is involved. For this reason, I love my AmEx card, Costco, Apple, and eBay, for offering buyer-satisfaction guarantees, and ensuring I will be happy or reimbursed for my purchase. I can also trust the quality products to perform well and pass the test of time. I have been cutting back on purchases that don’t really affect my daily life. I love Starbucks, but not enough to spend $5/day on it. I would rather spend $6 on a huge container of coffee at Sam’s Club, and allocate the savings to another area of my life. So while I may invest in a sweet computer, HDtv, vacation or lip gloss, my retirement and savings accounts aren’t suffering, and I’m not just racking it up on a credit card making minimum payments as I go.

I believe it’s important to sacrifice in certain areas to be able to enjoy the things that truly bring you happiness or comfort. This is all swell if you have the luxury of discretionary money period. As I grow I’m beginning to realize many people have NO “fun money” to speak of. Or, more likely, is they do, they just spend it in ineffective ways. Medical bills, student loans, credit cards or other high-interest loans prevent a lot of people from ever keeping up with their debts or learning how to live within their means. Financial hardships prevent people from getting ahead, usually because they never learn to stop making the mistakes that got them into the situation in the first place.

So many stressful money situations can be avoided if we all start thinking before we spend. For me, the hardest part is removing myself from opportunities to spend money. Ideally, I should never make a purchase that isn’t premeditated, whether it’s a pack of gum or new bedsheets. I’m going to try to facilitate this mindset by getting back to the basics. There are relatively few things I actually NEED.

Physical needs: Food, clothing, shelter, medical care, exercise, sex.
Emotional needs: Social interaction, connection to family, romance (yes, I need it!)
Developmental needs: Intellectual stimulation (soon to be in the form of CLASS again), personal growth, new experiences, giving to others/volunteering.

Outside of those things, I justify purchases based on their accordance with other values. Health and beauty are important to me (obvi, for most girls), as are comfort and organization. So when I find a product that I can’t live without in these categories, I’m usually hooked bc I know it will fulfill a need and maybe simplify my life a little.

Thinking about this could inspire a “Top 20 purchases” post. How about you, what can’t you live without?