What Do You REALLY Need to Live?

 

 

The Budgeting Series

 

 

*NOTE: This is part 9 of a series on budgeting.*

If you have missed the previous articles in this series, I encourage you to read them before moving forward – they are in linear order for the reader’s sake:

1. Budgeting 101
2. Living Below Your Means
3. Avoiding Lifestyle Inflation
4. Reevaluating Your Budget
5. Tightening Your Financial Belt
6. Introducing Finances to Your Children
7. Tips to Help You Budget Better
8. Reverse Budgeting and Building a Case for Opportunity
9. What Do You REALLY Need To Live?

You can read any of them as stand-alone articles, but for the full effect, they are each designed to build off of each other.

Introduction

 

We would do well to understand exactly what we actually need to live

 

This is the last part of the budgeting series, and it asks a simple – but profound – question: What Do You REALLY Need To Live?

For my part, I believe most people never really try to figure this out – much less ask themselves it. It’s a profound question, though, and one that’s worth exploring.

The reason?

Because when you find the answer, it gives you freedom.

You no longer need to try and keep up with the Joneses. It aids you in gauging just what you need to budget. It helps you establish firmer financial boundaries.

It also helps you establish your work-life balance. It helps you obtain peace.

There literally is nothing that isn’t affected when you understand just what you need to live. To that end, let’s take a look at what you REALLY Need to Live. First, we will look at some big ticket items, followed by a quick list of smaller things – and then finish with a list of things most people believe they need, when in reality, they don’t.

 

Roof Over Your Head

 

You don’t HAVE to live in an extravagant home – just a roof over your head

 

I’m sure there are some out there who will tell you (and perhaps you are one of them yourself) that you NEED a large, extravagant, and spacious home. While it may be nice to have, it isn’t a necessity.

And this comes from someone who just moved to a bigger house back in January (2023).

What you do not know, however, is how I resisted moving for years. We were a family of 5 living in a roughly 1,300 square feet home with no garage and a 12′ x 12′ shed in the backyard. It was a post-WWII home.

And my wife is a stay-at-home mother who homeschools our three kids.

AND I began to work from home back in 2020 – when the COVID pandemic started.

Talk about cramped. We were on top of one another for many years before we began to seriously look at moving. I resisted because I understood this principle – that we merely NEEDED a roof over our heads – and that’s it. Everything else is a luxury.

What’s more, because I understood what we truly needed, we were able to have – and enjoy – some margin.

(Margin is room to breathe; it’s the ability, in this case, to not be housebroke – you know, every single dollar you earn spoken for so you don’t have any extra.)

Now, we are REALLY enjoying our new place – 2,000 square feet WITH a basement AND an 18′ x 22′ detached garage. We at least tripled our space, no joke. Plus, less than 1% of houses in my area have basements, and I have ALWAYS wanted one. If you’ve ever crawled under a house through a crawlspace, then you understand.

Yet, for all of the above, if we HAD to, we could go back to the 1,300-square-foot house. It would be a royal pain, we would be over top one another again, and we’d even have to have the renters find another place. But if we absolutely had to, we could do it.

And it would be because we HAD to.

You see, in the end, the same applies to you, too. You can make do with just having a roof over your head if you HAD to. And that is the point: understanding exactly what you could do with so that you understand what is luxury.

This will ultimately help you with your budgeting, peace of mind, margin, and financial prowess.

 

Clothes On Your Back

 

People often go overboard with extravagance when it comes to clothing

 

This one ought to hit home for a lot of people. From the time we are young, we feel the need to fit in; to have the best of everything – and that includes clothing. In keeping with the theme of this article, though, we would do well to ask ourselves, “What Do I REALLY need To Live?”

Where clothing is concerned, I suspect many would be astonished at the little they actually need.

I know people who have shoes to match outfits. Enough outfits to wear a new one for at least a month – some even longer. I know others who wouldn’t consider “off” brand clothing. Still, others would not even think of shopping at certain stores.

In the end, ALL of that is luxury. And I should know – because I also partake of that same luxury.

When you purchase an article of clothing from me (t-shirt, long sleeve, hoodie, jacket, etc. – SOON TO COME, FYI), you are buying union made in the USA clothing. For me, it’s a matter of principle.

I could sell cheaper clothing made in sweatshops, but principle has got the best of me.

What’s more, I’ll be banking on you, the reader/podcast listener/supporter, and your willingness to purchase on principle, too.

But in the end, I’m aware that even with principle, what you REALLY need isn’t necessarily what I’m selling (in the merchandise realm, that is).

And the same applies to the other articles of clothing you wear, too. You NEED clothes – but not expensive ones. The sooner you realize that the better off you’ll be. This is especially true with those in the skilled trades. We wear out clothes at a faster rate than most others; the trades are hard on body and clothes.

 

Food On Your Table

 

You need food on the table to eat and live

 

Ahhh, the joy of eating good food. I know plenty of people who, for whatever reason, actually enjoy the act of eating. They relish it. As someone who is picky when it comes to eating, I’ll never really understand it.

Still, we need food to live. Not as much as many of us are accustomed to, mind you, but still – we need to eat.

To that end, it certainly is one of the necessities and an item that needs to be on the budget.

What we DO NOT NEED, though, is to go out to eat.

Or eat steak, lobster, and caviar.

We need to eat, but we do not need to eat certain higher-end and more expensive foods. The point of this distinction is to get you thinking. It’s to make you understand your absolute needs as opposed to your wants. We often confuse the two, and it has an effect on our bottom line.

Look, at the end of the day, it’s your budget; you make and spend the money how you please. And hopefully, you will have extra to get the food you would like to have. But in a pinch, when you are seriously considering how to deal with a money crunch – or even getting out of debt faster – you can trim some from the food you get.

 

Utilities

Utilities – most notable are power and water – have made their mark on life and are necessary, as a result. Let’s take a look at each.

Power

 

 

Ours is a power-hungry society – in more than one way, too. But for our discussion here, we are focusing in on electricity.

Your fridge needs it. Your lights do, too. Along with TVs, computers, AC, and yes, the computer in your hand – your cell phone.

All of those and many more not listed require electricity, and as such, it is a necessity. Therefore, it needs to be included in your budget when you consider what is absolutely necessary.

 

Water

 

You HAVE TO have water – even more than food

 

Talk about a necessity. Your body MUST HAVE WATER. You can go without food a lot longer than you can with water. You absolutely need it.

From a budgetary perspective, then, you have to factor the cost into your budget. Not the cost of the actual water, mind you; that is free – as it should be.

What you are actually paying for is the infrastructure built to deliver and treat the water, at the convenient turn of a handle. It sure beats taking a bucket down to the local watering hole (where the phrase came from, btw), filling it up, and going back home – and then treating the water yourself – often by boiling it.

In any case, budgeting the water bill is a necessity and, therefore, is included on our list.

 

Vehicle

 

 

Having a vehicle has become a necessity in this country, for numerous reasons. Sure, there are those who live in urban areas and use public transportation, but they do not represent the citizen mass. Indeed, millions drive to work daily where there is no public transportation at all. And, some places of employment are farther than others. Millions definitely need a vehicle.

But what type of vehicle?

Ahh, now we are asking the right question. Many feel they need the newer model; some even want a luxury car. Reality hits differently, though. What you really need is something that one simple word can describe:

Reliable.

That’s it. That’s all there is to it. No need to try and impress others; truth is, they aren’t thinking about you, anyway.

When contemplating what you actually need to live, remember the word reliable, budget accordingly, and thrive.

 

Other Necessities

 

 

Other items you need to factor in would include vehicle maintenance, insurance, fuel, laundry, children and their associated costs, retirement, etc. Think about your own situation and circumstances, and I’m sure things come to mind.

Some people have to factor in the cost of appliances, whereas others use services. Some people have to pay for child care; some don’t. Still, others need to consider association fees (think condos, HOAs, etc.), whereas others do not.

The point is that your situation is as unique as you are; your own story has to be told from a financial point of view. I’m just advocating for some thought when doing so.

 

Things That DO NOT Make The List

 

I thought a good way to end this article was to highlight some of the things many people believe are necessities, but actually aren’t. I suspect this is true for a lot of people, too; making the case for particular items when, if they disappeared from our life, we would still go on. Loss of convenience? Yes. Detrimental to our life? Not likely.

 

Cell Phone

 

 

The first on the list – on purpose. I can’t think of something else that is so entrenched in society, and yet we truly could do without if we HAD to.

I can hear some objections, already:

“How will my kids get ahold of me?” or, “How will I get ahold of them?” “What if there is an emergency?”

I’m not saying they aren’t awfully convenient, because they definitely are. Still, we have survived without them for thousands of years, and if you didn’t have the money to spare, you could go without one. Heck, I can even imagine some people forgoing cell phones in the future because they value their time, tired of spam phone calls, and the constant connectivity. “Am I really ever off work?” they ask.

To that end, they are a luxury, not a necessity. If you are not constrained financially, it isn’t a problem to include that cost in your budget.

If you are in a pinch, though, it’s an option to eliminate if you HAD to. That’s all I’m saying.

 

Internet

 

 

Next on the list is one of the greatest inventions since sliced bread: the internet.

I love the internet; it’s how I’m connecting with thousands of you, here. I love that I can look something up with ease. I appreciate the ability to purchase something with a push of a button. Endless entertainment streamed to your computer, tablet, or phone is possible because of the internet.

However, unless you work from home and need it, it most certainly is a luxury – and therefore, it’s a want, not a need.

Hey, I get it; I’d hate to cut it from my house, too. In an absolute crunch, though, you best believe it’s on the chopping block.

 

Cable/Streaming Platforms

 

 

On the heels of the internet is what’s delivered by it: the evolution of cable – streaming platforms. You can literally binge-watch for years and not run out of entertainment. For my part, I’m convinced we watch far too much TV anyway.

That’s not the point of the article, though. It should be evident they are a luxury, not a necessity. If needed, it could all be cut from our budget, and we’d still survive.

In fact, I’d wager if we took the time to actually figure out just how much money we were actually spending on entertainment, we’d be surprised. I know people who spend $200-$300 A MONTH!

No matter the amount, it’s firmly in the luxury category and should be treated as such. If you have the money fine; running short on cash, though?

Cut the cord, so to speak.

 

Conclusion

 

In the end, it is ultimately up to you to consider, make, revise, and stick to your budget. Given that most Americans do not budget at all, this automatically puts you at an advantage over millions.

Instead of constantly wondering where your money goes, wouldn’t it be better to tell it where to go – and what to do?

Wouldn’t it be better to have some peace of mind when it comes to finances? Wouldn’t it be nice to shave off some stress? Can you imagine making a plan, sticking to it, and feeling a bit more free?

You already know the answer – and so do I.

So, build up some financial discipline, make and stick to a budget, live better, and enjoy yourself knowing you have things under control.

You’ll thank yourself later – I guarantee it.

 

 

And, if you have missed the previous articles in this series, I encourage you to read them  – they are in linear order for the reader’s sake:

 

1. Budgeting 101
2. Living Below Your Means
3. Avoiding Lifestyle Inflation
4. Reevaluating Your Budget
5. Tightening Your Financial Belt
6. Introducing Finances to Your Children
7. Tips to Help You Budget Better
8. Reverse Budgeting and Building a Case for Opportunity
9. What Do You REALLY Need To Live?

*NOTE: This is part 9 of a series on budgeting.*