What Are Wants? Understanding the Fine Line Between Desire and Necessity

So you’ve decided 2024 is the year you finally get your finances together. You’ve heard about the 50/30/20 budget framework and decided to give it a shot. But here’s where things get confusing: what are wants exactly, and how do you know if you’re overspending on them?

Breaking Down the 50/30/20 Blueprint

The 50/30/20 rule offers a straightforward approach to money management. Allocate half your budget to needs, dedicate 30% to wants, and channel the remaining 20% toward savings and debt repayment. Sounds simple enough, right? The tricky part isn’t understanding the math—it’s drawing that line between what you genuinely need and what you merely desire.

Distinguishing Needs From Wants

Your needs are the non-negotiable expenses required to keep life running. These typically consume roughly half your monthly budget and include:

• Rent or mortgage payments
• Utilities and basic home maintenance
• Health insurance premiums
• Groceries and essential food costs
• Transportation (vehicle payments, insurance, fuel)
• Job-related expenses
• Childcare costs
• Home or renter’s insurance

For some people, additional obligations like legal fees, spousal support, or education costs can push the needs category higher than the standard 50%. This is perfectly normal—the 50/30/20 framework is a guide, not a rigid rule set in stone.

What Are Wants? The Discretionary Spending Category

Now let’s address the elephant in the room: what are wants, and why do they matter for your budget?

Wants represent everything beyond your basic survival needs. They’re the discretionary purchases that enhance your lifestyle but aren’t essential. Common examples include:

• Streaming subscriptions and cable services
• Dining out and food delivery
• Entertainment (movies, concerts, theme parks)
• Gym memberships and fitness classes
• Shopping for non-essential clothing
• Travel and vacation expenses
• Gaming apps, magazines, and digital subscriptions
• Hobby-related purchases

The key insight? Understanding what are wants doesn’t mean eliminating them entirely. A sustainable budget actually incorporates some discretionary spending—otherwise, you’re setting yourself up to fail.

The Real Challenge: Context Matters

The difficulty with separating needs from wants isn’t theoretical—it’s personal. Your needs look different from your neighbor’s because of geographical location, family size, health conditions, and life circumstances. Someone managing a chronic illness might have medical expenses that far exceed the average person’s needs budget. A single parent with two kids has different childcare requirements than a couple without children.

This is why cookie-cutter budgeting often fails. Your budget must reflect your actual life, not some idealized version of financial perfection.

Practical Strategies to Control Want Spending

Reducing discretionary spending requires strategy, not just willpower. Here are proven approaches that actually work:

Track Everything First

Write down every single expense for a month. Most people are shocked when they see the actual numbers. Those “small” subscription services quietly draining your account? They add up fast.

Implement a Reward System

Make financial goals tangible by attaching rewards to achievements. If your goal is eating out less, treat yourself to one restaurant meal after successfully cooking at home for a week. This psychological approach works because it satisfies the reward-seeking part of your brain without derailing your progress.

Remove Temptation Physically

Leave your credit cards at home when visiting stores or malls. It sounds basic, but this single action eliminates impulse purchases more effectively than relying on willpower alone.

Reassess Subscriptions Regularly

Set a calendar reminder to review all recurring charges quarterly. Cancel services you no longer actively use.

The 20% Savings Question

The final 20% in the 50/30/20 framework deserves attention. While ideally this goes toward emergency funds and retirement, many people carry substantial debt. Financial advisors often recommend applying that 20% toward debt elimination first, then transitioning to savings once debt is manageable.

Create Your Own Budget Blueprint

The most critical realization? There’s no universal budget template that works for everyone. Your financial blueprint needs to accommodate your specific circumstances, values, and goals. Building in some room for enjoyment—spending on things that matter to you—actually improves your ability to stick with a budget long-term.

Start by honestly assessing your current spending patterns, defining your personal needs versus wants, and setting realistic targets. The goal isn’t perfection; it’s progress and sustainability.