Over the last couple of years, we have heard a lot about what is and is not essential. As humans, we innately need very little to survive, but how often do we think we need far more than we actually do?
It may be the quality of life we experience, whereas wants have become needs; maybe it’s that status quo, maybe it’s keeping up with the Jones’s or simply believing we deserve to have certain things in life. Whatever your thought process, it’s important to actually look at what is essential not only from the standpoint of the basics but essential to you.
There is a personal finance personality named Dave Ramsey who refers to these essentials as the four walls being; food, shelter, clothing, and transportation.
Looking at how to define your essentials and, in turn, budgeting for those aspects that are essential to you will allow you to prioritize what truly matters most to you.
So what is essential to you?
You may be thinking of healthcare and your rights, or you may be thinking about clean water, and you may be right.
But many are immediately thinking of food from a grocery store, order-out, order-in, or restaurant meals, your car or transportation otherwise, your clothing, where you live, the subscriptions you have, your phone, high-speed internet, maybe even the storage for all the stuff you thought you needed.
And then some are thinking about their peace of mind, freedom of time, enjoyment of life, or maybe their lack of all of those leading them to redefine what they need.
You see, what is essential is going to vary from person to person and will be defined differently based on who you talk to. We can all agree that there are basic needs for oxygen, water, food, and clothing, but when these are all covered, what comes next?
As we go through this theme of defining and planning for what’s essential, start by thinking about what your needs are and then what you want based on the lifestyle that you either lead or want to lead.
CTA:
My call to action is to briefly consider your needs and whether you adequately plan for those needs. If you have a budget or Plan to Spend currently, you may start by reviewing what has landed on that budget based on priority. What do you actually plan for?
