Bangalore: Restricting yourself to a particular budget and eliminating excess expense to fit within the budget is a good habit. A key part of successful personal finance is to know the difference between something we need, an essential purchase; and, something we want, a discretionary purchase. Initially it will be an easy task slashing all their unnecessary spending habits. But when we have to eliminate certain things that fall into the category of necessary needs the trouble buzzer hits. It is a real challenge to decide what among the necessary needs can be eliminated. You might decline this thought but convince yourself that even what seems like a need can sometimes be eliminated.

Here are four of the most common "needs" that are really not that necessary.

Excessive Purchase of Real Needs

It shouldn’t come as a surprise to you when you hear that Needs like home, car and TV set are a man’s most common needs. We need a house to live happily and comfortably and to have some security in life. Because investing in house is a long term investment. But it would be greed if you look for a house big room and more space and that would definitely consume more of your income in maintaining the property.  You need a car to get to work, but that doesn't mean getting a new lease on a car every three years. When you overindulge into doing something, it clearly signifies that you are living beyond your means.