The market is a dangerous place for your wallet. Everything looks like a need, but most of it is just a want.
Every Saturday I go to the morning market. It is crowded, noisy, and full of colors. The sellers shout loudly. Fresh fish! Cheap shirts! Sweet mangoes! On discount! My eyes see everything. My heart wants everything. My wallet says, slow down.
For a long time, I could not control myself. I went to buy vegetables, but I came home with vegetables, a new toy for my child, two fried snacks, and a phone case I did not need. I spent $8 extra. My wife was angry. I was angry at myself.
Then I learned the difference between needs and wants. It sounds simple, but it is hard in real life.
My Definition of Needs vs Wants
I made a simple rule for myself after losing a lot of money.
Need = If I do not buy it today, my family cannot eat, sleep, or work tomorrow.
Rice is a need. Gas for cooking is a need. Medicine is a need. School fee is a need.
Want = If I do not buy it today, nothing bad will happen tomorrow. I just feel less happy.
New t-shirt is a want. Fried chicken from the stall is a want. New phone case is a want. Sweet iced tea is a want.
Most of the things in the market are wants, packaged to look like needs.
The 24 Hour Rule That Saves Me $15 Per Week
I now use the 24 Hour Rule for all wants.
Example: Last week I saw a nice grill pan for $8 at the market. I really wanted it. I imagined cooking fish on it. I held it in my hand.
Before, I would buy it directly. Now, I put it back. I say to the seller, "I will think first." I go home. I wait 24 hours.
At home, I ask myself 3 questions before sleep:
1. Do I already have something similar at home? (Yes, I have a normal pan)
2. Can I borrow it from my neighbor if I need it? (Yes, my brother has one)
3. If I do not buy it, will my life be worse tomorrow? (No)
After 24 hours, I did not want the grill pan anymore. I saved $8.
Real Numbers From My Last Market Trip
Last Saturday, my shopping list was: Rice $4, Eggs $2, Vegetables $2. Total need = $8.
At the market, I saw: Fried snacks $1, Sweet drink $0.50, New sandals $5 (discount!), Toy car $2.
Total wants = $8.50. Almost the same as my needs!
I used my 24 hour rule. I only bought my needs for $8. I went home. Today is Tuesday, I do not remember the sandals or the toy car anymore. But if I bought them, my weekly budget would be destroyed.
Result
Since I use needs vs wants filter, I save around $15 per week. That is $60 per month. Half of my emergency envelope comes from just saying no to wants.
I am not stingy. I still buy wants, but I plan for it. Once a month, I have a $10 "wants budget". I can buy anything with it. Last month I bought ice cream for my child with it. I felt happy, not guilty.
Final Thought
The market will always try to make you buy wants. That is their job. Your job is to protect your $18 weekly budget. Use the 24 hour rule. If after 24 hours you still want it, and you have want-budget, then buy it.
Try it this Saturday. Write your need-list before going to market. Only buy what is on the list.
FAQ
Q: What about wants for your child? It is hard to say no.
I have a small $3 per week special budget for my child. If he wants a toy, he must wait and save from that $3. It also teaches him about money.
Q: Is it okay to buy wants sometimes?
Yes, of course. But wants should have their own small envelope, not take money from your rice envelope.