Wants vs. Needs

In a purely intellectual sense, we all know the difference between wants and needs. We need a roof (any roof) over our heads, sustenance, utilities and transportation. Other wants and needs are defined differently by different people. Some of us would consider medical insurance to be a need. In 2007 18% of Americans under the age of 65 had no medical insurance so clearly, for some it is a want. Telecommuters and most freelancers need to have Internet at home in order to work. Others would classify home internet access as a want and suggest going to the library. Once our basic needs are met, and the tools we require in order to work are in place, the lines tend to blur. If we have a bit of a financial cushion, however small, the lines blur even more.

I’ve been thinking about this subject a lot lately. Yesterday I had an appointment to get my hair done. That appointment costs me $80. I used to go every eight weeks and then I stretched it to every ten weeks but that’s all I’m willing to give. On the surface, spending $80 on my hair seems a definite want. I could let it go to become whatever color it may be now. I could wash it with shampoo from the Dollar Store, braid it down my back and never give it another thought, saving me $416 a year, plus whatever I’m currently spending on hair products. If I were nearly homeless and struggling to put food on my table, that’s exactly the path I’d choose. Luckily, I’m neither and, although I did give up pedicures this year, I’m not quite ready to qualify my hair care as a want.

When I was reviewing articles for the Carnival of Debt Reduction I looked at one by a writer at The Happy Rock who calls himself the Debt Destroyer. The Destroyer shared his monthly expenses for January. He is working towards his goal of paying down his debt. One of his expenses was $180 that he spent on two memberships to the Pearl Jam fan club and a Pearl Jam anniversary edition CD set. As you might imagine, he was pretty roundly pilloried in the comment section for this particular expense. He justified it by explaining what a huge Pearl Jam fan he was. He finally allowed as how perhaps the CD set was a want but the fan club memberships were definitely a need.

I was amused by the seeming ridiculousness of his argument but the more I thought about it, the more I realized it was no different than me justifying my beauty shop expenditures. Clearly these are gray areas for both of us. If we were really broke neither of us would be making these purchases but, since we’re not, we can choose. It slows down our debt repayment and our savings but, evidently, to us it’s worth it. I suspect most people have a similar dilemma in one area or another.

Although Dave Ramsey might not commend me for my “gazelle-like intensity”, I have managed to stave off my urges (so far) for a netbook and a Kindle, as well as countless other little wants. While I really am working hard to achieve my goals, is it so terrible that I don’t want to look like a bag lady while I’m doing it?!

I’m curious, what are your gray areas? What can you not quite give up even while you are trying to better your financial position?