How to Prioritize Needs Over Wants: A Guide to Smarter Financial Decisions
Making ends meet in an expensive country or city such as Singapore usually involves some painful financial decisions. Regardless of whether you are looking to get out of the paycheck-to-paycheck loop or just want to be better with your finances, learning how to prioritize needs over wants is the first step to efficient savings and financial independence.
What Are Needs and Wants?
And now, before we get down to strategy, here is the distinction:
Needs are necessities: shelter, food, mobility, medical and education.
Wants are great to have: branded clothing, the newest technology devices, going out to restaurants, or high-quality subscriptions.
One of the temptations that cause overspending and postponement of savings targets is wanting things more than needing them. This article takes you through the steps on how to evade it.
Why It’s Important in Singapore
Singapore is an embodiment of efficiency and high quality of life, however, at a high price of living. MoneySense Singapore says that it is very important to be smart with your finances and this is the only way you can be secure in the long run.
It is a common problem as people tend to type in "how to prioritize needs over wants Singapore Quora" or “Singapore paycheck to paycheck Reddit”.
Step-by-Step: How to Prioritize Needs Over Wants
1. Track Your Spending
Download Seedly or use your bank e-statement app to see what you spend your money on. This is how you start distinguishing needs and wants.
2. Use the 60/20/20 or 50/30/20 Rule
Financial guidelines like the 60/20/20 rule (60% needs, 20% wants, 20% savings) can help you structure your budget clearly.
3. Label Each Expense
Make three columns; Needs, Wants, and Savings. Examine each transaction and put it in the right column. You will be surprised at the amount of money that you spend on wants.
4. Pause Before You Buy
Impulse purchases usually go into the category of wants. Establish a 48-hour rule on buying anything over 50 dollars.
5. Set Clear Financial Goals
It is much easier to resist unwanted purchases when you have set goals, such as saving up to buy a house or to create retirement income.
6. Automate Your Savings
Set a part of your salary to be automatized into an additional savings account as soon as you receive payment. It is the best trick when looking at "how to increase my savings."
7. Stay Accountable
Find a money accountability partner or share goals with a friend. Reddit threads like "Savings Singapore Reddit" show how powerful peer encouragement can be.
Real-Life Example: Budgeting in Singapore
Meet Sarah, a 28-year-old executive who was living paycheck to paycheck in Singapore. She was spending $400/month dining out and $300/month on online shopping. After learning how to prioritize needs over wants, she:
Reduced dining expenses to $150/month
Started meal prepping
Unsubscribed from unnecessary shopping newsletters
Saved $550 monthly, which she redirected into investments
At Ascendant Globalcredit Group, we believe that learning how to balance your needs and wants is the foundation of smart, sustainable wealth building.
Ascendant Globalcredit Group
Wants, Needs, and Savings: A Smart Balance
You don’t have to eliminate all wants—just manage them. Allowing yourself occasional treats can keep your budget sustainable. The goal is to balance your lifestyle without compromising your savings.
Common Mistakes to Avoid
Over-categorizing wants as needs (e.g., monthly salon visits)
Not adjusting spending during high-expense months (festive seasons)
Failing to review the budget monthly
Tools to Help You Prioritize Better
At Ascendant Globalcredit Group, we understand that knowing the difference between a want and a need is just the first step. To help you make smarter, data-driven financial decisions, we’ve developed a range of free calculators tailored to the unique needs of individuals and families in Singapore:
70-20-10 Rule Money Calculator – Break down your income and allocate it for needs, savings, and wants using this popular budgeting model.
Personal Loan Calculator – Understand how taking on a loan affects your financial health before deciding whether it's a need or want.
Investment Growth Calculator – Plan for your long-term needs by seeing how your investments will grow over time.
Mortgage Calculator – Prioritize housing needs realistically by calculating how much home you can truly afford.
Gold Investment Calculator – Explore safe-haven options to preserve your wealth while prioritizing future financial security.
Corporate Loan Calculator – For small business owners or entrepreneurs separating personal and business finances.
Property Valuation Calculator – Evaluate investment properties and see if buying aligns with long-term needs or speculative wants.
SGD-Equivalent Rental Yield on Prime Overseas Properties – Know if an overseas property purchase supports your goals or lifestyle desires.
These tools are available via our platform and are designed to take the guesswork out of financial prioritization.
Final Thoughts
Mastering how to prioritize needs over wants can drastically improve your savings rate and long-term financial health. Whether you’re saving for your first home, building an emergency fund, or planning for retirement, small, consistent changes make all the difference.
Financial control begins with clarity and discipline. So start today—and stay consistent. Whether you're trying to increase your savings, avoid lifestyle inflation, or simply get clarity on your current financial health, our team is here to support you with data-driven insights and tailored financial solutions.
-
Start by tracking your spending, then categorize each expense. Use rules like 50/30/20 to help balance your budget.
-
You should always prioritize needs first. Wants can be addressed only after your essential expenses and savings goals are met.
-
Create a financial plan. Set aside money for essentials and automate your savings. Use a spreadsheet or budgeting app to separate wants from needs.
-
It’s a budgeting rule where 60% of your income goes to needs, 20% to wants, and 20% to savings. Ideal for people with moderate incomes looking for a balanced lifestyle.