Why is it important to distinguish between your needs and your wants?

Answer 1

Because resources are limited. Nobody has the resources to get everything he or she wants. Thus it is necessary to prioritize your wants and to understand what it is that you actually need. You need food and water or you will die. You need that food to contain the nutrients you need to be healthy. So, as much as you might want that new smart phone, food comes first. And as much as you might want that bag of french fries, they contain no nutrients that your body really needs.

Addicts can completely lose perspective on these issues and end up without money to eat because they spent it on their addiction.

Answer 2

A need is something your body cannot live without, such is water warmth nutrition and sleep. Want is something the individual would like to have, but does not necessarily need.

Making a list of your wants and needs will help you as an individual to recognize where your needs and wants overlap, and they also teach you who you are as a person.

We westerners usually have a lot longer listing of wants than needs, as often our needs are already met.

Prioritizing your personal list help you focus your goals in life = gives you direction where to start and prevents you from making silly mistakes. There is no point buying a new car now, when you have a baby on the way... you will most likely need the money for something you actually need. Perhaps an used car is better?

Prioritizing is necessary so you can conserve your efforts, focus on what is important now.