Spending Habits: Needs vs. Wants

Another excerpt from "Developing Discipline in Spending:"

"One of the best financial lessons we can ever learn is the difference between needs and wants. The agreed upon needs of humanity our simple: food, clothing, and shelter. Does that mean caviar, high-fashion one-of-a-kind outfits, and million dollar penthouses? Of course the answer is no. Most of us can easily see past that exaggerated example. But when it comes to less obvious questions, although in theory we may know the answer, in practice we all too often rationalize unsound choices.

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