The Needs Based Prioritization Budget

by C Peterson

I use needs-based prioritization to budget. What is needs-based prioritization?

It is a system of budgeting based upon the actual needs, as opposed to wants, of living beings.

The wants or desires of people encompass an infinite variety of goods and services. But the needs of people are actually quite simple.

If we analyze those needs, we find that any living being has five needs:

The need for food. This includes water, groceries and eating out.

The need for shelter. This includes utilities, clothing, rent or mortgage and RV/boat expenses.

The need for defense. This includes security, legal, governmental, banking, medical and job-related expenses.

The need for mobility. This includes transit, car, motorcycle, fuel and plane/ship expenses.

The need for communication. This includes telecommunications, subscriptions, dues and contribution expenses.

Once these needs-based expenses are taken care of in order, I bank the surplus, if any, for the future in investments.

Any wants beyond these needs are only indulged after budget items are taken care of month-by-month.

In this way I am able to live frugally, but not miserly. Needs-based prioritization allows me to have what I need now, while saving for the future, and allows me to indulge a few immediate wants without failing to meet my obligations.

I also tend to keep my needs simple, and few in number.

As an Airman (a certificated pilot), I enjoy an extremely mobile lifestyle, and so I tend not to accumulate possessions I can not carry with me.

This, combined with my needs-based prioritization budgeting keeps my expenses low. If you practice expenditure preplanning using needs-based prioritization, practice voluntary simplicity, and do not carry large balances on your credit cards, it is easy to enjoy a comfortable lifestyle while saving for retirement.


Good luck, and ENJOY your time spent budgeting and planning!

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