Understanding the difference between needs and wants is crucial for financial discipline from "summary" of The Concise Psychology of Money by Morgan Housel
One of the key pillars of financial discipline is the ability to distinguish between needs and wants. This seemingly simple concept holds a profound impact on our financial well-being. Needs are the essentials required for survival and basic functioning - food, shelter, clothing, and healthcare. Wants, on the other hand, are the desires that go beyond basic necessities - the latest gadgets, trendy clothes, luxurious vacations. Understanding the distinction between needs and wants is crucial because it shapes our spending habits and financial decisions. When we prioritize needs over wants, we allocate our resources towards the ...
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