Need

Meaning :

A need is defined as a fundamental requirement essential for living or functioning, encompassing necessities such as food, shelter, clothing, education, and healthcare. Needs are differentiated from wants, which are optional and not critical for survival. They represent the basic requirements that individuals must fulfill to sustain themselves and maintain a stable  quality of life.

Importance :  

Understanding needs is vital for effective budgeting, as it facilitates the prioritization of essential expenses over discretionary spending.

It enables individuals to focus on necessary expenditures, thereby mitigating the risk of  incurring unnecessary debt.

Recognizing and categorizing needs aids in strategic financial planning and the development  of prudent saving habits.

Use in Daily Life & Business  :

Families often structure their monthly budgets around their needs, ensuring that essential expenses are addressed before considering discretionary spending.

Businesses utilize customer needs analysis to inform the design and development of products and services that effectively meet market demands.