Something that is very important when setting up a budget is understanding the difference between wants and needs. We all have needs that must be taken care of to live. We have to eat, have a place to live, and have clothes. In order to keep our home up, we need gas, water, and electricity. Depending on circumstances, we may need a car to get to and from work or a uniform for a specific job. Needs must be met before wants.
Wants are things we do for fun. It is okay to have and get wants as long as our needs are met and we have the ability to purchase the wants without over extending ourselves. We have to be careful when assessing what is a want and what is a need. For example, we NEED to eat, but we may WANT to eat out once a week. We NEED to have clothes, but we may WANT to wear the most expensive name brands.
Also, we must be careful about being wasteful. Do you have a light on in your house that doesn't need to be on? Have you ever watered the lawn in the rain? We still need to have water and electricity, we just don't need them in certain circumstances.
Before we spend our money, we should ask ourselves if we can maintain our current standard of living without it. If we can, then it is probably a want. Are all of your needs taken care of? Are you able to afford it? How bad do you want it? All these things should be addressed before purchasing a want.