Needs vs Wants?

Picture from http://www.businesspundit.com/5-ways-to-boost-your-credit-score/ and Mundane Daily Musings.

After reading this article, it leads me to write this entry.

During this period, I do watch Oprah Winfrey and one of the segment is Suze Orman . She is a regular feature in Oprah's show and she explains finance and women's relationship with finance. I read from somewhere that some viewers would call and consult her on their 'huge' purchase. She would point to her gold earrings to remind them about not spending too much coz that pair of earrings cost her USD 300 plus (she bought it from 7 yrs ago ~ cant remember)

She mentioned that we simply buy things that we don't actually need but it is just to impress people that we don't even know (roughly quoted). I do know of somebody who displays all the priced possessions of the branded items that were bought in some network forum.

Frankly, I do think it's true and it is important to spend within your means. Sometimes, we do resort to retail therapy to relieve the stress in our daily life which is not healthy. Words like 'Sales', 'Buy 2 for the price of 1' are definitely attractive to entice consumers to spend. At the end with the bills come, we will be in the state of denial and trying to recollect whether we had purchased the item. Inside every closet or wardrobe, there are countless of clothings still have the price tag intact. This is an addiction and there are support groups such as Shopaholic Anonymous to curb this.

In the end, we will be suffering in pain when we tried to pay the hefty bill and if we could not pay, the interest will roll. Bank interests are usually high. Soon, this figure will snowball and it becomes harder to pay these debts. Soon, if we persist to spend more and it becomes a vicious cycle. Next, you will be in debt and filed for bankruptcy. Hence, many of us spend our future earnings to satisfy our current carvings and wants. These items are not necessary needs to our lives.

For me, I'm not angel. This economic downturn had made to reconsider my buys and do more homework by comparing prices through various stores. At the same time, I try to check with my frens (we have similar taste) whether they would like to buy similar items especially when there are 'Buy 2 for the price of 1' sales. For more expensive items, I will walk away and 'sleep' on the idea. If I really like the item, I will go back for a final look before purchasing it. Lastly, I have SL with me whenever I go shopping as he's my second opinion.

Hope this helps.