Sometimes, just the right thing comes along at just the right time. Today is a fine example. During Week Four of Back to Basics, we’re talking about planning your spending. One important aspect of planning your spending is putting your needs and wants in some sort of order of importance. You also need to strike a balance between your wants and needs, and make room for savings, debt repayment and giving in your spending plan.
As if he read my mind, Flexo at Consumerism Commentary has done an outstanding post on exactly this subject: Budget Categories Based on Maslow’s Hierarchy of Needs. If you are not familiar with the idea, a psychologist named Abraham Maslow created this idea that every person had a basic structure to their needs and wants. Flexo does a fantastic job of clearly tying this in with personal finance, so I’ll let you stop reading me and click on over to Consumerism Commentary to see what Flexo has said.