Why are budget decisions hard to make?

Answer 1

Budget decisions are hard because you often must make the choice between wants and needs. Maslow's Hierarchy of Needs shows that the most basic of needs: food, water, warmth, rest, security, and safety are essential for every human. Without the most basic of needs met it is hard to focus on your psychological and self-fulfilling needs. When considering your budget and what you desire to purchase/pay for ask yourself, do I WANT or do I NEED this? Will your physiological needs be met (NEED) before your psychological or self-fulfilling needs (WANT)? If all your physiological needs are met, then consider spending on the wants.