needs vs. wants

I think of the biggest eye openers for me of this process is diffentiating between needs and wants. It is amazing what you think you "need". Then, adversity strikes, your income dries up, and you have to decide what is absolutely necessary. I should preface this by saying that not everyone scales back their spending when their income dries up. Some people live in patent denial, and rack up credit card debt, compounding their problems even more. However, in my case, I have gone into survival mode. When the paycheque is dropped into the bank, the bills get paid. If there isn't enough money to pay all the bills on time, then the sequence (in order of importance) is usually: mortgage, electricity, car payment, gas bill, credit card bills, phone/satellite/internet bill, then cell phone bills. A bit of money is always set aside for groceries/personal care items and gas for the car. And then usually that's about it. I almost never have anything left over for anything like clothes, entertainment and the like. I make sure the kids are fed, they have clothes that fit, buy diapers/formula and that's about it. My husband and I have wardrobes that are beginning to look worn out, but at the moment it's not a need. I get down at times, feeling sorry for myself, bemoaning my old raggedy clothes, but really it has to be put into perspective. One only needs to turn on the news and see the situation in countries like Haiti, and then your own life looks pretty darn comfortable in comparison. We really don't need anything that badly.