The interesting thing about Budget Savvy readers is that their spending habits vary greatly. Some are compulsive shoppers that come to us for guidance on how to curb their spending. Some are compulsive frugalists looking for advice and good deals. And some are already masters of the Budget Savvy philosophy: Save money on the things that aren't important to you so you can afford to spend money on the things that are important to you.

Regardless of which of the three spending habits best describe your own, you know that saving and spending your hard earned cash is a constant balancing act. It's a continuous process of making decisions.

Whether it's a new house, new car, new couch, new purse or shampoo when you make a purchase, you make a decision. Boiling it down, purchases are Needs, Wants or Passionate Desires.

Needs
Needs are relatively easy. You need shelter. You need clothing. You need food. In its simplest form, that's all you truly need.

Wants
Wants are dangerous. Wants keep you from your Passionate Desires and occasionally from your Needs. Wants make you overspend.

Passionate Desire
Passionate Desires are the best part! Passionate Desires include your dream home, that exotic vacation and the brand new wardrobe.

The Budget Savvy person concentrates her spending on Needs and Passionate Desires. She ensures that her Needs are paid for and then focuses her spending on making her Passionate Desires come true.

Avoiding Wants
Wants often happen at big box stores. When you get to your car and realize that you walked in for toothpaste and walked out $150 poorer, you look through your bags and see all the items that you purchased, without the initial intention of doing so. If you had stuck to the original Need purchase of the $3 toothpaste, you would be $147 closer to your Passionate Desire.

Middle Ground
There is a middle ground between Needs and Passionate Desires that is not as dangerous as Wants. In truth, for most of us, if we scrimped and saved and never spent a dime outside of our Needs in pursuit of our Passionate Desires, we wouldn't enjoy the journey.

Personally, I want to enjoy the journey AND achieve my Passionate Desires. I do this by creating a Wish List. If I Want something, I add it to my Wish List. This gives me time to reflect and decide if I really want it, or if it is just a mindless impulse buy. Whether it's a new purse, wine glasses or a piece of furniture, if it is something I truly want then adding it to my Wish List gives me "permission" to make that purchase.

Try using a Wish List to keep your spending focused, help you achieve your Passionate Desires and enable you to enjoy the journey!