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Wednesday, August 25, 2010

Distinguishing between needs and wants

Actually there is an appropriate way to address consumer example above is, we can identify the needs and desires.

Actually what is meant by the need? The need is something that is needed by humans in order to achieve prosperity, so that if any of these needs are not met then people will not feel prosperous or less prosperous. Can be said that the need is something that should be there.

While the desire is something additional to the expected demand can be met so that these people feel more satisfied. But if the desire is not fulfilled then the real welfare is not reduced.

To distinguish between needs and wants, must be viewed in terms of its function.
Sometimes you think of desire as a need that must be met.

This mindset must be changed, because if you can not distinguish between wants and needs then you are not familiar logical consequence expense items that need to differentiate and unnecessary. Being unable to distinguish automatically the respective certainly will not be able to control the expenditure, if this lasts surely you will experience or future financial lost known as a large wedge of the pole.

Then how not to become a deficit? There are two ways, first make additional efforts to increase wages or income, the second way is to control or control unnecessary spending.