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Think Want, Need, Must About Your Money

pyramids Today we’ll discuss a simple, yet effective, way to make sure you’re spending your money how you intend. Divide your spending into three categories – wants, needs, and musts.

We used to think about luxuries and necessities. This splits those luxuries into two categories because, over time, luxuries tend to become necessities.

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georgeLike the dishwasher we have. It’s not a need; it’s a want. But I’d sure hate to live without one!

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marylynnI think my cell phone is a need. But the unlimited texting and the ability to watch videos are wants that I added to my package.

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With our cable TV, we have DVR and premium channels. Those are definitely wants, but we love the convenience and variety.

Climbing the pyramid

Picture a pyramid, with wants at the base, needs in the middle, and musts at the top. We tend to move things up the pyramid. The importance we place on them climbs, so to speak. We look at things that are truly wants as needs; we view things that are really needs as musts.

That’s why we think it’s a good idea to break necessities into two – needs and musts. It helps us refine what is really important.

Mixed message

It’s pretty easy to define our musts – food, clothing, shelter, and transportation. But even within this category, there are mixed messages.

For an example, let’s consider transportation. At its most basic level, the only thing we need from our chosen form of transportation is the ability to get from one place to another. Public transportation clearly would suffice for many people.

However, if you use public transportation, you lose some control over your own schedule. You give up the convenience of having your own vehicle.

So some people may need a car because of their job. They need a vehicle to drive to appointments. Could it work without one? Possibly, but it might cost you too much time to be worthwhile.

It depends on your situation. In the end, only you can know what is best for you.

Gizmos and gadgets

There’s another way that wants, needs and musts can come into play. We’ll stick with the example of a vehicle. Even if you need a car, what do you really need? Something reliable or that fancy car in the ad? Just the basics or a vehicle with all the gizmos and gadgets?

The second of these choices, which are clearly wants, can make a huge difference in the price you pay for a car. And if you happen to finance it, they will add many dollars more in interest costs over the years.

We interviewed Adam Shepard on The Bigg Success Show not long ago. Upon graduation from college, he decided to see if the American Dream was still alive. Starting with only $25 and the clothes on his back, he was eventually able to buy his own vehicle among other things. His vehicle wasn’t anything fancy – an old pick-up truck with manual windows, one which didn’t work. But he still had the transportation he needed!

Keep these three categories in mind and you’ll keep your budget in line!

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Thanks for reading our post today. Join us next time when we’ll discuss how these same three categories relate to how we spend our time. Until then, here’s to your bigg success!

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Is Your Schedule Overloaded Like A Dishwasher?

dishwasherSome couples argue about whether the toilet paper should roll over or under. Others squabble about whether toothpaste should be squeezed from the bottom or the middle. We might be unique, but we have a running disagreement about how full the dishwasher should be.

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marylynn If you’re keeping an eye on the news, you see that a lot of large companies are cutting marketing and even customer service. They’re cutting jobs and even entire departments. They’re streamlining.

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georgeAnd Mary-Lynn doesn’t fill it up enough … we spend money we don’t need to because we waste water and electricity.

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marylynn Well, we spend money when we have to wash the dishes again because some of them didn’t get washed in the overload.

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So now you see where we reach an impasse!

More importantly, this whole dishwasher discussion made us think about our schedules.

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marylynn My theory is that if you put too much into your schedule, just like the dishwasher, you can’t get it all done.

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georgeI don’t disagree that you have to be careful about overloading your schedule. I may be guilty at times of doing that, just like I overload the dishwasher according to Mary-Lynn. But you know the old saying – if you want something done, give it to a busy person.

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marylynn It’s the old 80/20 rule – 80 percent of the work gets done in 20 percent of the time. It is true that when you’re super busy, it seems like you are more productive. However, when you get too overloaded, you may not achieve what you set out to do. The result – you get frustrated and discouraged. It can even paralyze you at times.

4 ways to keep from being overloaded

#1 – Plan for reaction time

georgeWhen I first started managing people, I often overbooked myself because I didn’t allow for time to respond to my employees. I’ve seen a lot of first-time managers make this same mistake. The closer you are to the front line, the more important this is. Allow time to react to customers and employees or you’ll find yourself with too much to do in too little time.

#2 – Understand your patterns 

marylynn George is more of a morning person … I’m more of an afternoon person. So we just don’t work together at all! Seriously, plan your schedule so you’re working on your most important activities when you’re at your best.

#3 – Work at human capacity

georgeThis is a tough one. My dad, who’s one of my heroes, always thought he could get done more in a day than he actually could. He taught me well! Make sure you’re not planning ten hours of work if you only have eight hours to do it. Realize that you’re human, too. There will be times when you need to slow down or take a break.

#4 – Sometimes it pays to procrastinate

marylynn A prime example is the post you’re reading. Yesterday, we were trying to get this show done and I just wasn’t feeling well. We felt like if we pressed on, our end product wouldn’t have been as good as what you’re reading now.

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georgeSo we decided to put it off for a day. There was no reason not to … and hopefully, you’ll agree that we did alright!

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marylynn Now if I can just get George to stop loading the dishwasher so full!

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