It is within the physiological needs that “wants” actually emerge. You need a roof over your head, but you want a spacious house with top-of-the line appliances, renovated bathrooms, and a finished basement. Even if that house is within your financial reach, you must recognize that it is a want, not a need.
Read MoreMaintaining an emergency fund of a few thousand dollars for true emergencies is great because it satisfies basic physiological and safety needs. But once you’re mentally able to move up the hierarchy of needs to psychological needs and self-actualization, you’re ready to build an opportunity fund. Saving for the future will seem far more enjoyable.
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