Learning the friendly way

This year has proved to be an exciting one for the crypto adopters, with markets taking turns playing out to bulls’ and bears’ delights. Bitcoin crossed the $66,000 mark for the first time in history, and with that, a new data trend has emerged which has shone a light on a significant gap in the market.

Here we explore the vast potential of the integration of the corporate market into the crypto industry. Recent data has exposed the large gap between crypto trading taking place on major exchanges. It has been discovered that there is little trading activity between the retail or institutional type of trader, setting two extremes: retail investors trade hundreds to several thousands of dollars while institutional investors trade millions.

In other markets, this range is generally made up of family offices ,mid-to-large corporations, or high-net-worth individuals. However, in the crypto space it appears that navigating the $100,000–$500,000 trading bracket is not as common.

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An Overview of the ever-expanding cryptocurrency market

According to a study conducted by Chainalysis, cryptocurrencies usage across the globe increased by 880% when compared to that of last year. Meanwhile, experts forecast that this number is likely to increase. In 2021, major companies across many industries have taken an interest or invested in cryptocurrency and blockchain.

Cryptocurrencies are becoming increasingly popular, especially among institutions. This demonstrates that interest is no longer restricted to individual crypto aficionado traders. Large financial firms like BlackRock and Goldman Sachs have invested in cryptocurrencies, showing the potential of this asset class.

Bitcoin and Ethereum have grown popular and should be perceived as a positive development as it is a necessary step for cryptocurrencies to achieve widespread adoption. Some experts predict that more large, multinational businesses will accelerate the adoption of blockchain technology in the coming months.

Accepting cryptocurrencies as payment is something to consider if you run a business. As cryptocurrency adoption grows, so is the number of merchants who accept it.

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Bridging the gap

Several reasons why this corporate market is yet to engage in cryptocurrencies is believed to be due to the lack of trusted liquidity providers, reasonable pricing, banking partners or secure technology. If your company is interested in opening a corporate account enabling your business to accept crypto payment, transfer, billing, and trading, Tap can assist your venture getting started with cryptocurrencies.

Bridging the gap, Tap is launching a new service that will provide crypto exposure to this mid-range market through its trusted and verified mobile app. The new Corporate Account will provide specialised B2B services catered directly to companies looking to enter the world of cryptocurrencies.

Through these services, companies will be able to make and receive payments in the supported crypto and fiat currencies, enjoy reduced transaction fees through the native token XTP, as well as earn interest through the Earn feature. While the B2C market has become somewhat saturated, Tap Global has taken aim at the B2B market, providing an early entry, alongside transparent pricing, for corporate companies into the crypto sphere. 

As the financial landscape continues developing at a rapid pace, the app serves to provide an early and seamless approach to the future of payments that we are fast approaching. 

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From “Risky Investment” to global reserve

While Bitcoin hasn’t entirely evolved into a global reserve currency (yet), it has undoubtedly emerged from the speculative asset it was considered to be just several years ago. As crypto continues to break into new markets, the corporate market is growing in interest at a steady pace and seeking a way to integrate crypto payment and investments into their businesses.

With a range of reliable and tech-forward products on the market, there is little doubt that the rate of crypto adoption will continue to grow. While Tap provides a space for early adopters and high-net-worth investors, the company also opens its doors to a wide range of individuals and corporations, no matter where on the scale of net-worth or transaction volume they might sit.

Freelancing is a popular career choice that has grown significantly in recent years due to the rise of the gig economy and the increasing availability of remote work opportunities. The freelance market is made up of self-employed individuals who work independently and provide their services to clients on a project-by-project basis. 

This type of work provides a great deal of flexibility and control over one's own schedule, workload, and earning potential. However, like any career choice, freelancing has both ups and downs. Below we explore what a freelance career might look like, and provide tips on how to be your own boss and a successful freelancer.

What is the gig economy?

The gig economy is a labor market where temporary or flexible jobs are common, and independent workers work on a project or task basis rather than being employed by a company or traditional employer on a long-term basis. 

This type of work is often conducted through digital platforms or apps that connect workers with clients who need their services. Freelance platforms include the likes of Upwork, Fiverr, and Freelancer.com for instance. 

Gig economy jobs can range from driving for ride-hailing services to performing freelance writing or design work. The freelance business allows individuals to work when and where they want, providing them with a great deal of flexibility and control over their work schedules, essentially making them their own boss. 

However, it also comes with challenges such as a lack of job security, no benefits or protections, and potential fluctuations in income. While freelance work sounds attractive, it’s important to consider the skill set needed and whether the ups outweigh the downs in relation to your specific needs and wants. 

Being realistic about freelancing

The freelance business has gained a reputation for offering a very attractive lifestyle, but it still takes work and requires a number of skills and commitments that you, and you alone, will need to front. 

Organization skills

For a successful freelancer, being organized and managing your time effectively is crucial. This means staying on top of your tax obligations, keeping your documents in order, and ensuring that you meet all deadlines. 

Multitasking

In addition, multitasking is a necessary skill for most freelance workers, as you'll likely have to juggle multiple projects simultaneously. This requires effective task prioritization and the ability to switch between different topics seamlessly. 

Strong communication 

Good communication skills are also essential for success, as you'll need to handle difficult clients and know how to ask for guidance when needed. Effective communication is also crucial to a successful freelance career as you will likely need to take the initiative and approach potential clients for work. Promoting your skills and putting yourself out there also requires courage and self-confidence. 

Self-discipline

Perhaps the most crucial for a freelancer freelancing in this day and age is self-discipline. No matter what line of work you pursue, you'll need to stay focused and avoid distractions while working independently, whether it's the temptation of a nap or a social interaction.

The freelance lifestyle may sound flexible, but in reality (more often than not) it is still a full-time job as you are essentially running your own business.

Handle criticism 

Being able to handle constructive criticism is an important trait for freelancers, as you'll often need to accept and respond to feedback that isn't always positive. Remember, even talented freelancers producing high-quality work receive negative feedback.

Self-motivation

Being self-motivated is key when working as a freelancer, as you'll be responsible for managing your own work schedule and meeting deadlines without the guidance of a manager. If you prefer a more social work environment, freelancing may not be the best fit for you as it often involves working independently. 

Financial resilience

Finally, new freelancers should be prepared to have a certain level of financial resilience as there can be uncertainty about when their next paycheck will arrive. When they start freelancing, quiet periods of contract work can be anxiety-inducing for some people.

The upside of freelancing

On the positive side, freelancing allows individuals to work from anywhere, giving them the flexibility and autonomy to balance work and personal life. 

One of the primary advantages of freelancing is the ability to take control of your work schedule. You have the freedom to choose when and where you work, making it much easier to balance your professional and personal commitments. 

Freelancers having the freedom to select their own projects means that they have a great deal of control over the type of work they do, far more than a regular job. You can choose to work on projects you enjoy and are passionate about, and have the ability to set your own rates and choose clients that align with their values. 

Additionally, freelancers have the potential to earn more money than traditional full-time employees as they have the ability to work with multiple clients simultaneously and charge higher rates for their specialized skills.

Another benefit is that your earnings are directly related to your effort and the quality of your work, which gives you a real sense of achievement that you might not feel working in a traditional office environment.

When done right, freelancing can offer a great deal of professional and personal fulfillment. Before you start full-time freelancing, however, be sure to understand the bigger picture of what is required.

The downside of freelancing

One of the most significant challenges for many freelancers is that it can be financially unpredictable, as one's income can fluctuate from month to month, paired with a lack of job security. Additionally, there are no paid vacation days, sick leave, or other benefits that traditional employees enjoy. 

As a freelancer, you'll need to ensure that you're always available to communicate with your clients, which can require a certain level of flexibility. On top of that, freelancers might also need to continuously search for new clients and projects on online marketplaces to maintain their income. 

If you venture into the world of freelancing, it’s important to note that you will also be responsible for all administrative tasks, including accounting, invoicing, tax obligations, and chasing payments, which can be time-consuming and require a great deal of attention to detail. 

Another issue is the isolation that can come with working independently, as freelancers often work from home or their local coffee shop and may not have the same social connections as traditional employees.

Overall, freelancing can be a rewarding career choice, but it requires a significant amount of self-discipline, motivation, and business acumen to be successful. It's important for individuals considering freelancing to weigh the benefits and drawbacks carefully before making the leap.

If you’re unsure whether freelancing is for you, consider slowly taking on one or two freelancing jobs while still working your traditional 9-5. This way you can test the waters with first-hand experience and see if this is something you would like to pursue full-time. 

10 steps to kickstart your successful freelancer career

If you’ve decided to take on a slow transition or full-time shift to freelancing, we’ve put together these 10 steps for you to take in order to build up your portfolio. From finding work on freelancing websites to managing the workload and establishing pricing, here are the tools you’ll need to build your freelance business. 

Step 1: Find your first job

Freelance work can be found through online freelancing platforms, which are a popular option for both freelancers and clients, with recent data showing that 75% of freelancers find work this way. Explore the various freelancing platforms and find which one best caters to your needs. 

Step 2: Build a portfolio of freelance work

To create a successful freelance profile, it needs to make a strong impression and showcase your skills, experience, and personality to potential clients. Consider taking on smaller projects in the beginning that will display your skill set to gain experience. The more you can show, the more interest you can attract. 

Knowing which freelance projects to take on and how to write a winning proposal can be crucial in securing steady work and building a reputation in the industry.

Step 3: Establish your pricing formula

One of the most common questions that freelancers have is how to price their work, as it can be challenging to balance fair compensation with the risk of losing clients to competitors.

There is a fine line between overcharging and scaring away potential business and selling yourself short. Use trial and error to figure out specifically where your skill set lies, and don’t be afraid to check out what other freelancers offering similar skills are charging. 

Remember: Your work is valuable, and your expertise, experience, and dedication deserve to be rewarded.

Step 4: Discuss the job parameters with the client before beginning

Before starting work on a project, it's important to discuss and agree on details with the client, including deadlines, the scope of work, and payment terms. This step is vital and should never be skipped.

Be sure to understand what the client wants and effectively communicate your requirements before spending any time on the project you’ve just landed on. 

Step 5: Manage client expectations

Freelancers need to manage client expectations and maintain a positive working relationship through effective communication and a clear contract. Always start on the right foot by being polite, assertive, and transparent.

Each client will be different so ensure that you navigate these relationships in a tailor-made manner. Ideally, you want to establish a strong client relationship and meet (or hopefully exceed) their expectations. 

Step 6: Manage your time effectively 

You’ve landed the job, now it's time to do the work. Time management is key to productivity and success as a freelancer. Ensure that you are scheduling work during productive hours, using time-tracking software if necessary, and effectively using your time to balance the workload of multiple projects.

Take the time to explore various tips and tricks for managing your time between projects, and build a winning formula that works specifically to your needs. The primary goal here is to maximize your productivity. 

Step 7: Get paid

Getting paid as a freelancer can involve choosing the right payment options, dealing with fees and invoicing, and learning the best course of action for receiving international payments. Tap provides a winning formula that caters to both crypto and top fiat currency payments. 

Unfortunately, this is also the time to learn how to address and handle non-payment issues.

Step 8: Manage your finances

Freelancers need to manage their finances carefully, as income can vary and benefits and tax obligations are the sole responsibility of the freelancer.

Be sure to stay up to date with policies like health and disability insurance, and learn about investing and passive income solutions for retirement and other savings goals. 

Step 9: Level up your freelance career

As a freelancer, there are many opportunities to grow your career and income, such as becoming an agency with other people working under you or teaching others your skills and experience through online courses. 

Step 10: If in doubt, start small

It's possible to balance freelancing with a day job, but it takes planning, determination, and persistence to make it work. This is also a great way to test the market and see if the freelancing life is for you. 

How to navigate the freelance business as a newbie

Now that you have a clear understanding of what freelancing entails, and a to-do list of steps to take to pave your new career path, below are some tips for anyone starting out or looking to become a freelancer. These will come in handy as you navigate the space and ensure that you don’t sell yourself short. 

Be selective about what jobs you take

To showcase your skills and present yourself as an expert, it's important to choose freelance projects that align with your skills and interests, rather than accepting every job that comes your way.

Establish a good pricing formula

Finding the right pricing balance can be tricky - charging too little can make you appear less experienced while overcharging can lead clients to seek out more affordable options. Researching market rates can help you find the right pricing balance.

Keep checking in with clients

Following up with clients after completing a project can lead to more work and strengthen your professional relationship. Consider suggesting additional projects that could benefit the client's business and make a note to check in again in a few months.

Always get a signed contract before starting

Before starting work on a project, always ensure you have a signed contract that outlines the obligations on both sides, including payment terms. Although it may feel awkward to request a contract, it can save time and hassle down the line.

Outsource administrative tasks if necessary

Administrative tasks such as invoicing, accounting, and tax management are important but can be time-consuming.

Consider delegating or automating these tasks to free up more time for paid work. Several millionaires interviewed in a study said that one of their keys to success was recognizing their weaknesses and delegating accordingly. 

Structure your day

To manage your time effectively, create a routine that allows you to balance work and other commitments. Scheduling work during your most productive hours and avoiding leaving work until the last minute can help you maximize productivity.

Stay motivated

Freelancing can be challenging at the beginning, but it's important to persevere and not give up. With experience, you'll gain more confidence and find it easier to secure work and manage your business.

Best of luck with your new venture if you decide to start freelancing.

Considering going on a last-minute travel adventure? While we’ve been programmed to think that last-minute travel equates to more expensive, this isn’t necessarily always the case. In this article, we’re dishing out the top 5 last-minute travel tips and ways in which you can score big and tap into great last-minute travel deals. 

From tips on how to google flights to finding hotel rooms with perks and everything else you might need for your last-minute bookings, we've got you covered right here.
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1) Be flexible

Flexibility is key to saving on any last-minute travel needs you may have. And the number one way of doing so is by being f.l.e.x.i.b.l.e.

Whether it’s with your travel dates, flight times, or destination, flexibility can save you a lot of money in the long run. Accommodation and flight prices depend on a plethora of factors such as whether it's in-season or off-season, if you're only looking at popular destinations, or if there are events taking place nearby at the same time, i.e. a conference.

Be sure to check out a range of options before deciding on a specific date and time, just a day’s difference can equate to hundreds of dollars. You might end up surprised by how much money you can save on your last-minute travel adventure by just going with the flow.
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2) Fly wise, fly cheap

The most significant savings come from hotel deals and package deals—not airplane tickets. Flight prices usually go up in cost as the date of departure gets closer, but there is hope for last-minute travel deals. If you want to fly out of town within the same week that you book your seats, try buying your tickets on a Sunday or Tuesday, airlines frequently discount their fares on these days and offer the best deals.

You'll be saving some decent money by avoiding flying on Fridays and Mondays as fares are expected to be higher since they're the most popular days for weekend travelers. Opt for mid-week travel if possible.

Another top tip that many individuals are unaware of is that their browser keeps track of the terms they search for on a regular basis. If the platform notices that someone is searching for anything related to holidays or last-minute flights, the price will rise.

To avoid paying more for the same thing, make sure to open your browser in an incognito window before you google flights and thus prevent being tracked or leaving a history of your searches. The same applies to airline websites and online travel agencies. Not just a last-minute travel hack, but one to use across all varieties of travel.
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3) Be on the lookout for perks

If you're looking for a more affordable way to vacation, then pay attention to the perks and benefits offered by travel companies and accommodations, especially when it comes to last-minute travel. Consider booking accommodation that includes free breakfast and/or complimentary parking, every little bit helps. 

You will be surprised at how much money some of these perks can save! For instance: free breakfast could save you about $20 to $25 per day while parking can easily range from anything between $30 to $45 a day if you opt to get a rental car.

Always do the math before deciding if a specific accommodation is worth it. Check out platforms like Booking.com, Travago, and a specific hotel website you like for the best deals and last-minute travel options, as well as travel apps for any last-minute deals.
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4) Read the fine print

When it comes to a last-minute trip, be aware of the fine print when booking your flight, adventure, or accommodation. Make sure to read up on their cancellation policies as many airlines now offer relaxed rules for changing plans at short notice which means you may be able to change dates without penalty if necessary.

While last-minute deals and spontaneity are exciting, sometimes life has a way of getting in the way so be sure to know the specific terms of your flights and hotels.
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5) Prep like a pro

If you're looking to travel on a budget, there's more to think about than just withdrawing cash from an ATM. With a little planning ahead, you can become a savvy traveler and save yourself some money - even with last-minute travel!

Many of us have been abroad and had to pay outrageous ATM and credit card fees. And all because we didn’t do our research and plan ahead. By taking your Tap card with you, you’ll save a substantial amount of money on your ATM withdrawal fees and foreign exchange fees thanks to its low to zero fees plans compared to that of traditional banks. 

All operated through the app, you can stay up to date on your transaction history and your balances in real-time, and easily - and instantly - transfer funds between accounts. The card also allows you to swipe at merchants worldwide and make quick payments no matter where in the world you might be.

It's also worth doing your research on whether the place you are traveling to prefers guests paying cash or if it is more card transaction based. You would hate to have to travel around with a wad of cash that is difficult to get rid of.

Be wise

Booking for a honeymoon, anniversary, or simply a romantic getaway? Last-minute travel might not be appropriate for you if you’re set on a particular type of accommodation at a particular location or must go during specific travel dates. 

If everything has to be in harmony with your plans, we would strongly recommend you book ahead of time instead of opting for a last-minute trip. You wouldn’t want to cut corners to save money on your once-in-a-lifetime memories. 

Travel smart to travel far

Embrace all that life has to offer by exploring different corners of the globe and get more bang for your buck with these 5 travel tips. From saving a few bucks here and there, you could end up saving big on your last-minute trip.

Be sure to switch to incognito mode and start searching for your dream holiday, it might be just around the corner! 

Becoming a homeowner no matter what your income level is an achievable goal with the right amount of planning. Below are a few ideas we've put together for you to think about and implement if you're ready to start taking the steps to make your dream a reality. When it comes to learning how to save money for a house, these steps will make it seem a lot less daunting than one might initially imagine.

Financial steps to take when looking to save for a house

1. Create a realistic timeline

While different people have different timelines, it's important to set a realistic one for yourself when you're planning to buy a house. This way, you can budget and plan accordingly. For example, newlyweds are usually in more of a hurry to buy a home than someone who just graduated or started a new job. One person might be looking at 2 years while the other is okay with 5 years. There is no "right amount of time" to save money for a house, consider your individual circumstances and act accordingly.

2. Kickstart your savings

After establishing your realistic timeline, you can then determine how much you will need to save. While the goal is to put as much money as you can aside, this might be 20% - 30% of your monthly income, so be sure that this is realistic for you and adjust the timeline accordingly. 

Once you've established how much you will be putting aside each month for your goal, set up a direct debit to your savings account to ensure that that money leaves your account before you're tempted to spend it.

You can also explore the option of a savings account that offers the potential to earn interest over time. People often consider money market accounts or high-yield savings accounts. However it's important to conduct comprehensive research and base your decisions on the information you gather.

3. Don’t neglect other financial obligations

In this day and age, instant gratification is something we've grown accustomed to. Saving for a house is the opposite of this and will take time. Instead of cutting off all your expenses to try and reach your goal a year or two sooner, consider what financial obligations you might have over the next few years and be realistic in setting a healthy amount of time to get there. 

4. Ensure your goal is within your means

Becoming a homeowner is an impressive accomplishment, but being riddled with debt and high maintenance costs for decades is hardly enjoyable. Ensure that the house you want to buy is within your means to maintain after the purchase, and consider additional costs like rates and taxes, transfer fees, and consider the associated monthly payment.

5. Make the necessary budget cuts

In order to achieve your saving goals within the amount of time you set out, you will inevitably need to cut back on your expenses. Once your living expenses and bills are accounted for, what can you afford to put away each month? Are you paying for a subscription you no longer use or have a luxury item you can cut back on? It might seem like a little each month but in a year this can amount to a lot of money for your housing fund. 

6. Consider increasing your income streams

Another great way to get your homeowner dream to fruition faster is to create new avenues of income. Multiple streams of income can alleviate your cutting back on expenses and can help your savings tenfold. Consider creating online courses, writing blogs, or building a side hustle aligned with one of your skill sets. Every little bit helps. 

Homeowners checklist: consider the closing costs

Once you have reached your financial goal of saving money for a house or your down payment fund, you'll now be faced with a new set of challenges: actually buying the house and putting that down payment to work.

At this stage, it's important to contact professionals that can assist you in finding, vetting, and deciding on a worthy property for your years of savings, and who can accurately advise on the closing costs of the transaction. Remember that there are lawyers' fees and transaction costs and even private mortgage insurance monthly payments to consider on top of the home's purchase price.

Whether you rely on an experienced real estate agent or a building surveyor, ensure that they are someone you can trust and that you get answers to the questions you ask. Some helpful questions to start with include:

• Is the land government approved?
• Why are the owners selling?
• Are all the house papers/documents intact?
• Is the area prone to natural disasters like floods or fires? 
• What are the costs of utilities, etc? 

Putting your down payment savings to work

Learning how to save money for a house is the first step. When you're ready to take the next step and purchase a house, be patient and ask the right questions. Saving for a house is saving for your future, so don't try to hurry the process along too much.

Whether you'll be living in the house or using it as an investment property with tenants, understand that the journey is as important as the end goal, and have patience as you pursue your dream and get steps closer to making that first down payment.

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Money talks, wealth whispers. In the age of flashy displays of wealth and conspicuous consumption, a new trend has emerged that challenges our conventional notions of showcasing financial success. Stealth wealth, as it is commonly referred to, goes beyond the idea of being frugal and understated. It involves consciously avoiding overt displays of money while still enjoying the benefits of financial prosperity. 

In this article, we'll explore what stealth wealth is, how it manifests itself, and why it has become a growing phenomenon. The idea of stealth wealth can assist you in saving more money, making smarter investments, and cutting down on spending.

What is stealth wealth?

Stealth wealth is essentially the art of living a life of financial prosperity without drawing too much attention to it. It's about keeping a low profile even if you have the means to indulge in extravagant displays of wealth. Picture someone who drives a modest car, lives in a modest house, and dresses in an unassuming manner, despite being financially well-off. It's a deliberate choice to prioritize financial security and freedom over materialistic shows of opulence.

What does stealth wealth look like?

A person practicing stealth wealth focuses on essentials rather than indulging in conspicuous luxury. They lead a simple lifestyle and prioritize experiences and personal growth over material possessions

Stealth wealth enthusiasts carefully manage their finances, prioritizing long-term financial goals such as retirement savings, investments, and building wealth rather than spending lavishly on temporary gratification.

They might enjoy certain luxuries but do so in a discreet manner. For example, they may splurge on a nice vacation, but won't go out of their way to flaunt it on social media or discuss it in conversations.

Instead of trying to impress others with material possessions, stealth wealth embraces the importance of genuine relationships and connections. They focus on building meaningful connections, fostering friendships, and helping others in unique ways.

Why is stealth wealth an up-and-coming trend?

More and more people are recognizing the importance of financial independence. By adopting a stealth wealth lifestyle, individuals can accumulate wealth without the pressure to maintain an extravagant lifestyle, allowing them to have greater control over their financial future.

The rise of social media and the desire for privacy have made people rethink their approach to displaying wealth. Stealth wealth allows individuals to keep a lower profile, avoiding unnecessary attention and potentially increasing security.

As society becomes more conscious of overconsumption, and materialism, many individuals are reevaluating their own values and priorities. Stealth wealth aligns with the desire for a simpler and less materialistic approach to life.

Traditional markers of success, such as fancy cars or designer clothing, are being questioned. People are starting to realize that true success lies in financial security, personal fulfillment, and the ability to live life on one's own terms.

In conclusion

Stealth wealth is a rising trend that challenges our societal norms of displaying wealth. It's about finding a balance between financial prosperity and leading a modest, understated lifestyle. By prioritizing financial independence, privacy, and personal values, individuals embracing stealth wealth are redefining what it means to be successful. 

So, if you find yourself drawn to the idea of a more discreet and restrained approach to wealth, consider joining the ranks of the stealthy and prosperous.

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While everyone's wants and needs might be different, there is always a clear line in the sand between the two. When getting to grips with one's personal finance, distinguishing the key differences between the two becomes important.

Needs encompass basic needs like food while wants lean more toward things one desires, like luxury goods. Being able to distinguish between the two, and acting on this, is imperative to one's healthy financial standing. 

In this article, we take a look at these two categories and assist you in differentiating between the two.  

What falls under NEEDS?

The need category looks at living expenses that one needs to stay healthy in their day-to-day living. These include everything from rent to the utility bill, medication and healthcare needs as well as food, commuting, and any work-related expenses. 

These are the basics required by one in order to function, and these should make up the bulk of your expenses. These expenses are also used to determine the amount you'll need when establishing your emergency fund. It is generally accepted that emergency funds should cover six months living expenses.

What falls under WANTS?

‍The wants category is likened to goods we could live without but choose to buy. These are not required for day-to-day living, however, when funds allow they can provide a more enjoyable quality of life. These include vacations, buying a house or car, entertainment, memberships, streaming accounts, etc. 

How to determine needs from wants

While some needs will be glaringly obvious, it's often the case that some wants sneak into the needs category. Here are three simple tools to help you distinguish between the two. 

Form vs function

If in doubt, consider how a product or service will be used. Clothing for instance: if the clothing will be worn to work it falls into the need category, however, if it's a clothing item centered around going out or recreation use, this will fall into the want category. 

‍Embrace brand variety

Needs and wants will differ from person to person, so it's best to have a solid grounding on what falls into needs and wants specifically for you. For instance, if you were looking to upgrade your smartphone, someone working in the tech or digital marketing space might be required to have a certain product, while in other cases getting the latest and greatest will fall into the want category. In this case, it might be best to explore other devices that have a lower total value.

Should you split expenses?

Grocery shops will more often than not fall into the need category, as feeding yourself is essential to survival. However, if the grocery shop consists of wine, chocolate, and other treats, this will fall into the wants category. 

While we don't expect you to scour through each grocery bill, be mindful of what you're spending your money on and try to balance shops between the two. For instance, if you splurge on a grocery shop one week with wants but register it in the needs category, consider adding the next week's grocery bill to the wants category. 

Is saving a want or a need?

Saving for long-term financial objectives like settling debt, retirement plans, and emergency situations might be tough for someone who makes less money. Because these costs are not immediate, they are not always recognized as a necessity.

However, settling debt can be a necessity to ease the financial strain. Furthermore, an emergency may strike at any moment, and during that time, an emergency fund will save one from falling into further (if not crippling) debt. As a result, it's vital to understand that even if your earnings are low, saving is beneficial in the long run, therefore, savings fall into the need category. 

How to navigate spending between wants and needs

Here are two easy steps to help you navigate your spending habits:

Create a budget

Establish a realistic budget and decipher how much you can spend on wants, needs, and savings. By creating a framework you can stick to, you can easily avoid any financial problems and still enjoy a good quality of life. 

A common ratio used in the budgeting world is the 50:30:20 method. Use 50% of your income on needs (rent, food, bills), 30% on wants, and put the remaining 20% straight into your savings.

Be realistic about your wants

If you're looking to save more money or are working on building your emergency fund, consider adjusting your spending on wants. Being more strict with what you can and cannot buy or lowering your standards somewhat can assist you in saving money and rather allocating the funds to a retirement fund for example. Other ways to reduce spending habits are to get a roommate or use public transport. 

In conclusion

Spending intelligently is without a doubt one of the most important ways to make your money go further. The principles, on the other hand, are focused on saving more, spending moderately on necessities, and sparingly on wants. Paying more attention to desires might lead to issues and limit financial development.

Consider carefully what your needs and wants are and then gradually attempt to lower your standard of living. By focusing on your essential needs without disregarding the importance of saving, you'll be on the fast track to financial ease in no time.

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