Weekly Summary for MoneyMasterClass - 8th Instalment
As the latest week of the Money Master Class comes to a close, participants were tasked with evaluating their needs versus wants. This exercise involved taking inventory of personal belongings and writing out a list of items to buy in a "Me and My Money" notebook.
Gail, the class facilitator, explained that even a good or cheap deal is a waste of money if it's not needed. To differentiate between needs and wants, she suggested starting by clearly distinguishing essentials (needs) like food, shelter, and basic transportation from non-essential items (wants) that improve quality of life but are not vital.
A practical tip offered was to track all spending for at least a month without judgment, then review each expense honestly, asking if it relates directly to survival or if a cheaper alternative exists. Categorize expenses strictly into needs and wants, and use this to build a budget that covers your absolute necessities first, sets aside savings, and then allocates what remains for discretionary wants.
To avoid being a bargain junkie—someone constantly chasing deals and buying unnecessary items just because they are on sale—Gail recommended focusing on clarifying your actual needs using a strict budget framework. Developing awareness of emotional or impulsive triggers that lure you into buying wants disguised as bargains was also suggested. Using Maslow’s hierarchy of needs to remind oneself which needs are fundamental before indulging in higher-level wants or luxuries was another strategy offered.
Resist the urge to purchase items unless they fulfill a clear need or fit within your planned handling of wants; avoid accumulating things simply because they appear to be good deals. In short, successful evaluation involves disciplined spending tracking, honest categorization, and budgeting priorities, while avoiding bargain hunting without purpose by keeping focus on true needs and well-planned wants.
In addition to evaluating needs versus wants, the shopping moratorium was introduced to help participants evaluate their desires and available storage space. Documenting belongings allows reflection on past purchases, bargains, and purchases outside the budget. Gail also tweeted a question about classifying items as needs or wants to spark further discussion.
Money Master Class participants were encouraged to share ways they give back to their community in the comments. A link to resources and instructions on creating a net worth statement was provided to aid in the inventory task. New participants can still join the Money Master Class, and weekly recaps are available to catch up on the course. The shopping list was suggested to be kept on a phone for easy access.
Gail emphasized the importance of gratitude and shared reminders about it throughout the week. She also provided a link to an article about the science of gratitude for further reading. Sharing options for the post were offered on various platforms. Although a net worth statement was not explicitly mentioned in the provided information, it was included in the inventory task.
As the Money Master Class continues, participants can look forward to more practical tips and discussions on personal finance management. Stay tuned for next week's recap!
Start with the Money Master Class Intro and Week One RecapWeek Seven Recap [Week Eight Recap will be available soon] [Tweet link not provided] [Tweet link not provided] [Link to resources and instructions on creating a net worth statement: https://www.moneyproblems.ca/money-master-class/] [Participants can share their thoughts on Facebook, X, Pinterest, LinkedIn, Tumblr, Reddit, WhatsApp, Email, Telegram, Threads, Bluesky]
The Money Master Class emphasizes the significance of differentiating needs from wants, with Gail suggesting meticulous budgeting as a way to do so. Participants were encouraged to track all spending for at least a month, categorize expenses into needs and wants, and prioritize budgeting based on these assignments.
Successful budgeting in personal finance involves disciplined spending tracking, honest categorization, and budgeting priorities, while simultaneously avoiding emotional or impulsive spending triggered by bargains disguised as needs.
