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backHave you ever noticed how one minute there’s money in your account and the next minute, you’re travelling back in time to see what you spent it on? It’s not rocket science; most of the time, people run out of money because they don’t clearly separate what they ‘must spend on’ from what they ‘simply enjoy spending on.’
Think about it:
Buying data for work and school runs vs spending half of it bingeing on TikTok challenges.
Buying foodstuffs for the month vs ordering small chops every evening after work because “I deserve it.”
None of these “wants” is bad in itself. After all, life is not about denying yourself the pleasures and conveniences of life. However, here’s the truth: if you don’t know how to balance your needs with your wants, you’ll always feel stuck, like money just passes through your hands.
In this article, we’ll explore what needs and wants are, and how to differentiate between the two in order to build a proper savings habit.
What Are Needs? (The Essentials)
Needs are those things you cannot do without. The expenses that keep your life running and stable. Without them, daily living becomes a real struggle.
For a Nigerian family, it’s the yearly rent that ensures you’re not moving from “friend’s house to friend’s house.” It’s stocking up on foodstuffs so there’s always food in the kitchen. It’s transport money to get to work, because if you can’t show up, how will salary show up?
Needs also cover your children’s school fees, hospital bills when health surprises come up, and electricity to keep your home functioning. These are not “luxuries”; they are the foundation of your stability.
Once your needs are covered, you can breathe easier. They give you peace of mind and create the base that allows you to plan for growth, savings, and bigger opportunities.
What Are Wants? (The Nice-to-Haves)
Wants are those ‘extras’ that make life sweeter, but you won’t collapse if you don’t have them. They’re not bad, in fact, they add colour and enjoyment to life, but they need balance.
Think about paying for a full cable subscription every month when you mostly end up watching YouTube or using your cousin’s Netflix login. Or buying the latest designer sneakers when your clean, good-quality shoes are still doing their job. Even though every weekend hangout with friends is fun, sometimes, ‘once in a while’ is enough to keep your pockets and your joy intact.
The truth is, wants are part of life. They help you relax, enjoy your hard work, and celebrate small wins. The key is making sure they don’t take food out of your kitchen or stop you from reaching bigger goals.
Why It’s Hard to Tell the Difference
If we’re being honest, knowing the line between needs and wants is easier said than done. Life in Naija will test you. Here’s why:
1. Peer Pressure and Social Media
Sometimes, you just open Instagram or TikTok and suddenly everyone is “enjoying.” New car, vacation in Dubai, latest phone. Before you know it, your mind starts telling you, “Maybe I need that too.” But in reality, it’s a want that’s trying to disguise itself as a need.
2. Lifestyle Inflation
As your income grows, your expenses somehow seem to “grow wings” too. That’s lifestyle inflation. Instead of upgrading your savings (check out our guide on what savings really are or even how to save money), you start upgrading outings, gadgets, and clothes. Suddenly, things you once saw as luxuries now feel like essentials.
3. Emotional Spending
We all know that feeling. Bad day at work? Let’s order pizza. Salary just dropped? Quick retail therapy. Impulse buys at the supermarket? You only wanted bread, but you’re leaving with chin-chin, ice cream, and a Bluetooth speaker you didn’t plan for. Most times, it’s not about the need; it’s about the emotion in that moment.
That’s why saving can sometimes feel tricky. But when you learn how to control these triggers and channel them into intentional savings, you start building real financial freedom.
Practical Tips to Separate Needs from Wants
Understanding the difference between needs and wants is the foundation of good money management in Nigeria. Once you master it, your money stops “disappearing” and starts working for you. Here are some practical saving tips you can use every day:
1. Ask the 3 Key Questions
Before you spend on anything, pause and ask:
Do I need this to live, work, or stay healthy?
Can I delay this purchase without serious consequences?
Will this add long-term value or just short-term excitement?
These simple questions help you draw a clear line between essentials and extras. That’s the first step in smarter budgeting in Nigeria.
2. Try the 50/30/20 Rule
A tested way to manage your salary or business income is the 50/30/20 rule:
50% for needs: rent, food, bills, and school fees.
30% for wants: enjoyment, weekend outings, lifestyle upgrades.
- 20% for savings and investments: send this directly into any of the Moniepoint savings plans on your Personal or Business Banking app for future security.
This balance ensures your needs are covered, your wants don’t overwhelm you, and your savings grow consistently.
3. Delay Gratification
One of the best saving tips Nigerians can adopt is to wait before spending. For non-essentials, give yourself 24 to 48 hours. Most times, the “hunger” to buy fades, and you end up keeping that money in your pocket or saving it.
4. Set Priorities with Goals
Needs vs wants become clearer when you tie your spending to goals. For instance:
Emergency fund = need
Business capital = need for growth
Land or house = big want turned long-term goal
December trip = ‘want’ you can plan ahead for
By linking expenses to goals, you’ll naturally make wiser decisions and see the benefits of saving in your everyday life.
How Moniepoint Helps You Balance Needs and Wants
Moniepoint savings makes it easier to strike the right balance between needs and wants. Here’s how:
Flexible Savings: Your quick-access emergency wallet for unpredictable needs like hospital runs or urgent bills. Withdraw anytime with no penalties while still earning 10% annually.
Locked Savings: Perfect for disciplined saving toward school fees, December holidays, or business projects. Earn up to 16% annually and avoid the temptation to touch the money too soon.
Fixed Deposit: Designed for long-term wealth growth; think land, a new house, or retirement. Save a lump sum, earn up to 18% annually upfront, and let your money do the heavy lifting.
With Moniepoint, you’re not just saving; you’re practising smart money management by turning today’s wants into tomorrow’s achievements.
Final Words
At the end of the day, the difference between needs and wants is about balance. You don’t have to deny yourself enjoyment, but your needs and future goals must always come first.
The benefits of saving go beyond “rainy days”; it’s about growth, opportunity, and freedom.
Start today with Moniepoint Savings. Whether it’s for daily emergencies, big projects, or life’s sweet extras, there’s a plan designed just for you.
