Meconomics: Do you Spend your Money Objectively or Subjectively?

This post is a continuation to:

Meconomics: I need my Wants and Want my Needs to be Satisfied
Meconomics: Wants and Needs in your Daily Living

In my previous post I started looking at how wants and needs are confused in our daily living. Needs would be the things you cannot go without and so, common sensically, they would be your priority when deciding what to spend your money on. Wants are things you can go without, but you would prefer not to. Often we lose sight of this distinction – where we will forget about or compromise on our needs to fulfil a want. Then we looked at the following:

“Most of the time, we don’t feel needs or are even aware of our needs, it is only when we lack our basic needs that we suddenly start being affected by them, first on a physical level – and if we see we can’t satisfy our needs, we’ll go into anxiety, stress and survival-mode. But when our needs are being met – they are ‘silent’ and go unnoticed, we feel they don’t really ‘add’ anything to our lives, because we have taken them for granted as just being a part of our daily living.

Desires on the other hand – do give us an energetic thrill or rush. We feel better thinking about our desires and fulfilling/satisfying them, we look forward to fulfilling them, they occupy our minds and lead us to daydreaming, they make us feel hopeful that we/our lives will be better once we satisfy them.”

We’ve been hardwired to lean towards positive experiences, so with the insight that we’ve given wants a positive connotation and needs a negative or neutral connotation – it is easy to see how we can experience wants as an overriding factor on a subjective level. Objectively – we can all quite easily understand that needs come before wants and that satisfying wants is secondary to satisfying needs – but on a subjective level – the level where energetic experiences, emotions and feelings determine what we value and think is important – the opposite is true: wants are more interesting, because they ‘give us’ more pleasant experiences than needs.

So – the problem doesn’t seem to be our rational understanding of needs and wants – but rather that our subjective experiences can in a moment cloud what is most important. A person can for instance make a budget plan, intending to have sufficient funds set aside to pay off bills throughout the month in consideration and understanding of the importance of doing so and the consequences of not doing so – and yet, can in a moment indulge in an enticing want, that ends up compromising the person's available funds at the end of the month. Because in that one moment – when the desire is experienced – the decision is influenced by the subjective experience that comes with fulfilling a want – objective rationality is denounced in the name of a feeling. Some might be able to relate to such moments more than others, as it will depend on your own relationship to your feelings and emotions  - to what extent you place value in them / to what extend you include momentary experiences in decision making.

Here we can also highlight another dimension that plays a role in deciding what to spend your money on – which is: time. Objectively – we know that if we don’t plan ahead to ensure we have enough funds to cover our needs – be it certain or uncertain ones (for instance, having savings for unexpected medical emergencies) – we will come to a point in time where we will not have enough and be in trouble. Yet – subjectively – short-term gratification can override long-term satisfaction – where we will be willing to ‘risk’ not having enough funds later on, to be able to indulge in a satisfying a want in the present moment. This often goes hand in hand with an idea that there is ‘time’ to figure things out and find another solution for the problem we are about to create later down the line – and also, unfortunately, often goes hand in hand with regret when we get to that later moment and realize: we got something we desired in that moment, but didn’t actually have alternatives/magical solutions to sort out/generate other funds to cover the need.

So – we have looked at how wants can in a moment override a need – where we identified subjective experiences and time as important players – but we can look a bit further and ask: why does it sometimes feel like we ‘NEEEED’ the things that we ACTUALLY don’t need. Objectively speaking – they are wants, things you can go without – and yet, you can experience a sense of ‘urgency’ and ‘must have’ and ‘I need it’ towards that which you want. Now wants really start messing with your sense of priority, lol. It’s one thing to be clear on the fact that what you are enticed by in a moment is not something you truly need, but you want to indulge yourself anyway – it’s another to feel like you actually NEED it when you don’t.

Let’s look at that dimension more closely in the next post.

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Meconomics: Wants and Needs in your Daily Living

This blogpost is a continuous to:

Meconomics: I need my Wants and Want my Needs to be Satisfied

To gain context on 'Meconomics', read and watch:

"Meconomics": ME-Economics
[83] Introducing Meconomics

In my previous blog I wrote about the word ‘wants’ and the word ‘needs’ and how, in economic theory, the two words started merging together into ‘wants&needs’ – treating both words as though they have the same properties and characteristics – as well as how this new merged term was then used as a justification for ineffective distribution processes in our capitalistic economic model wherein some people’s needs are not being satisfied, whereas others can satisfy virtually all their wants and desires.

In this post we’re going to apply the principle ‘as above, so below’ – keeping in mind that the economic model is a human creation – built in the image and likeness of its creator – it is worthwhile finding out where within ourselves we confuse the terms ‘wants’ and ‘needs’ in our daily living.

Have you ever been in a situation where, you realize you need to pay a water or electricity bill, but realize you’re out of funds, because you bought something in the last few weeks that you really wanted, and kind of forgot to keep money aside for these essential expenses?

Or have you ever been in a situation where you learned about a new product or gadget, like a new playstation, iphone, cooking utensil – you name it – where you just couldn’t get it out of your mind and felt you ‘had to get it’ and would feel kind of restless until the moment you bought it?

Or have you ever postponed studying for an exam, and a few days before the exam date, suddenly realized you spent most of your time on entertainment, going out with friends, watching movies or partying?

How does that happen? How come we don’t prioritize our needs over our wants?

That is actually something you can answer for yourself, have a look:

How often do you get excited over the idea that you will continue to have electricity in your house?
How often are you exhilarated by merely thinking about eating your sandwich in the cafeteria during your lunch break?
How many of your days are filled thinking about the new plain dark blue socks you’re going to buy because most of your current ones are worn out – where you enter a daydream and feel so absolutely excited and fulfilled imagining buying those new socks?

For most of us – that doesn’t really happen. For most of us – our needs are ‘boring’. Fulfilling our needs forms part of the basic support that we have and give ourselves, but they don’t give us a ‘thrill’, they don’t make us ‘ecstatic’, they don’t even get us excited. A need is not something you ‘feel’ on an energetic level – they don’t make themselves known through a rush. Rather – a need will make itself known through physical discomfort: hunger shows you a need for food, painful feet shows you a need for new shoes, the discomfort of taking showers in ice cold water shows us the need to pay our electricity bill. Needs make themselves known through ‘negative’ physical experiences.

Most of the time, we don’t feel needs or are even aware of our needs, it is only when we lack our basic needs that we suddenly start being affected by them, first on a physical level – and if we see we can’t satisfy our needs, we’ll go into anxiety, stress and survival-mode. But when our needs are being met – they are ‘silent’ and go unnoticed, we feel they don’t really ‘add’ anything to our lives, because we have taken them for granted as just being a part of our daily living.

Desires on the other hand – do give us an energetic thrill or rush. We feel better thinking about our desires and fulfilling/satisfying them, we look forward to fulfilling them, they occupy our minds and lead us to daydreaming, they make us feel hopeful that we/our lives will be better once we satisfy them.

I’ll continue opening up this point in my next post – stay tuned…

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Meconomics: I Want my Needs and Need my Wants to be Satisfied

The economic problem – the corner stone of economic theory – is defined as the satisfaction of unlimited wants and needs in a world with finite/limited physical resources. This implies that not all wants and needs can be satisfied, so the questions economic models attempt to answer are: How is it decided which wants and needs will be satisfied? How is it decided whose wants and needs will be satisfied? In our world today – the answer is: “those who can pay for the satisfaction of their wants and needs will see them satisfied, those who can’t pay for it – well, sorry, we have to draw the line somewhere”.

As I was reading about the economic problem for the first time – I found it fascinating that they used the words ‘wants’ and ‘needs’ in the same way and treated them as one term – like this: ‘wants&needs’ – lol. The difference between wants and needs was briefly explained, but then both words were thrown under the ‘wants&needs’ banner – as though ‘needs’ carry the same characteristics as ‘wants’ and ‘wants’ carry the same characteristics as ‘needs’. When you approach the economic problem by reading the words ‘wants’ and ‘needs’ as ‘wants&needs’ - then the world as it is today might make sense to you – then the economic problem might actually be a justification for the desolation and lack in which millions live. Perhaps that is how economists want us to read the words, so that we won’t hold them accountable for not yet having come up with a better solution.

‘Wants’ and ‘needs’, however, are two very different things. ‘Needs’ are things you NEED – that you cannot go without or you will be physically and emotionally compromised. ‘Wants’ are things you WANT – they go beyond what you ‘need’ – you can go without, but you would like or prefer to experience them or have them in your life. It is true to say that if you tally up all the individual wants of all the people on the planet – you will end up with ‘unlimited wants’. The same is not true for needs, however – there are certain things no human being can go without – say food, water, shelter, social interaction, medical support – where this is the same for every single person by virtue of them being ‘a human’ – and where for some, dependent on personal situations and circumstances, the list is expanded to include a few other things as well.

Considering that needs are limited – we may actually be able to satisfy the needs of all the human beings on the planet – and it is known that we can. So – instead of trying to work with ‘wants&needs’ where the task seems impossible and full of ‘sorry’s, we have to draw the line somewhere’ – we could start with the part that IS possible – satisfying everyone’s needs – and only then design an additional system or model that draws lines for ‘wants’. Our current model is one where some are able to satisfy all their needs and most of their wants, while others are not supported in their basic needs – which, you have to admit, is quite an insane situation. Part of why this is allowed is due to… ‘wants&needs’.

Now – this blog is part of my ‘Meconomics’ series – so you can already guess where I am taking this discussion next… For this situation to be as it is – with so few raising their voice and spurring into action to change the status quo – I started wondering how the same point exists within ourselves. The same point, meaning: do we in fact have a clear understanding of the difference between ‘wants’ and ‘needs’ inside ourselves and do we approach ‘wants’ and ‘needs’ appropriately in our own personal lives?

True story: Earlier as I was writing this blog and came to the section of clarifying the words ‘wants’ and ‘needs’ – I first took the easy route of simply looking up the words in the dictionary and copy/pasting the definitions in my blog. But! I couldn’t use those definitions, because they would have perpetuated the confusion between the words rather than clarifying the difference between them. Have a look:

If the dictionary uses the word ‘want’ to clarify the word ‘need’ and uses the word ‘need’ to clarify the word ‘want’ – we can be sure we’re on to something. Does this mean that wants simply imply needs and that needs imply wants – because the dictionary says so? No. Remember, dictionaries will reflect our own language usage – so if the word ‘want’ has been used over time to indicate a ‘need’ – then it becomes an ‘accepted use of the word’ and is reflected in the dictionary as such. In the same way, the word ‘need’ has been used to describe ‘wants’ – and so it has become ‘normal’. What the dictionary then shows is how we have confused the meanings of the words ‘wants’ and ‘needs’ for ourselves and started using the terms as synonyms.

In my next blog I will continue exploring how the ‘merging’ of the words ‘wants’ and ‘needs’ as ‘wants&needs’ affects and influences us on a personal level so that we can get a better understanding of the world as it exists today within the principle 'as above, so below'.

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