Some people spend a lot of money, because they just think about their actual needs and don`t create budget. They also don't question whether they can function in life without what they want.
You can simplify your budget by following the 50-30-20 rule. It states that 50% and 30% of the budget should be devoted to needs and wants, respectively, and the remaining 20% should be devoted to savings or debt repayment.
The difference between budget needs and wants is relatively simple. Needs are things you need to live a healthy life, and wants are things you wish you had but ultimately don't have.
Knowing what you need and want is essential in managing your finances. Categorizing your needs into your wants helps you track your spending and invest your extra money wisely. It also helps you cut costs.
To learn more about needs and wants visit:
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