Financial Therapist, Coach, and Mommypreneur Bari Tessler Linden believes we need to clarify the difference between needs and wants if we are to have a healthy relationship with our money. She suggests we start by examining our past, asking ourselves if our needs as a child were met. If not, we may turn to overspending to fill these needs. Linden suggests that we consider re-parenting ourselves to find true healing. Linden offers an allocation formula from Elizabeth Warren who envisions a balanced, happy financial life as 50% needs, 30% wants and 20% savings. Linden says knowing how much is coming in and where it’s going “…empowers you to make conscious choices.”
Read full article here: Needs vs. Wants
Carrie Rattle is a Principal at BehavioralCents.com, a website for women focused on mind and money behaviors. She has worked in the financial services industry for 20+ years and hopes to inspire women to better prepare themselves for financial independence.