wants
Also called: want
Spending that can be postponed without disrupting basic needs.
What it means
A want is spending that is enjoyable and improves quality of life, but is not required to survive. Examples include vacations, new gadgets, or entertainment subscriptions. Wants are legitimate to have, as long as they are funded after basic needs and obligations are met.
Why it matters for families
Letting wants take a larger share than basic needs makes a family vulnerable to financial shocks. On the other hand, suppressing all wants without limit can make a budget unsustainable. The key is an agreed and consistent share.
Example
For example, a family sets aside Rp300 thousand per month for entertainment from an income of Rp8 million. If they want a new gadget priced at Rp3 million, the family can save specifically for ten months instead of using a credit card.
Common misunderstanding
Many feel wants must be eliminated entirely in order to save. The correction is that planned and limited wants actually help a family maintain budget discipline over the long term.