A good place to start is to differentiate between wants and needs. Decide what you need and then put aside a few of the wants, for instance do you really need that new 50 inch flat screen TV or can you make do with the one you have for just a bit longer.

We often trick ourselves into wanting to be and have the best, not to say there is anything wrong with this, but if you are buying that new car or that latest gadget just to keep up with your friends or to impress your neighbors; stretching your budget to the maximum and or going into debt in order to buy it may not be the wisest thing to do.

So next time you plan on purchasing those new items, stop and have a good think and then decide do I really need them? Or do I simply want them? Just buy picking out what you really do need, from what you simply just want will help you hold onto much more of your hard earned money.

The more you do this the more you will see there really is a big difference between your wants and needs … needs are those things that are necessary to your survival: food, clothing and a roof over your head etc…

On the other hand wants are the things that are somehow going to enhance or better your life in one way or another.

[youtube]http://www.youtube.com/watch?v=MOsaVA1Xo6c[/youtube]