Well, the year is coming to a close. I’m beginning to think more and more about next year. (Anyone else ready to let go of this year?)  I am working on my 2010 personal annual spending plan. How much money am I planning on spending in 2010? Jeepers- there are a lot of things I need and want next year.  So before I started plugging numbers into my annual plan, I got a big cup of coffee and got out a blank sheet of paper.

I want you to get a blank sheet of paper too. Title it NEEDS AND WANTS

On the left side of this sheet I want you to write “2010 NEEDS” at the top. On the right side I want you to write “2010 WANTS”. Then I want you to dive in and brainstorm along three lines:

• What is all the STUFF you need or want? (material items)
• What are all the SERVICES you need or want?
• What are all the EXPERIENCES you need or want?

Part of this exercise is simply writing down everything you need or want. Think about your home. Do you need or want new furniture? What would it take for you to love your home more? Think about your self care. How can you improve your self care?

Put down how much each item would cost. Guess where you have to.

The other part of this exercise is deciding what is a “need” and what is a “want”. This is different for all of us, but the exercise of actually having to write something down on one side or the other is powerful.

For example, on my list I wrote down “secretary desk” on my wants side. But after thinking about it, I realized I needed it. In my new house I have no where to put all the damn paper that comes in. (I’m still getting settled.) I’ve had to stash the mail in the linen closet when company comes over! So I’ve got to get some systems in place quick. The bakers rack is more of a want. I want laser hair removal. I want to get a tree removed from my front yard. On second thought, given its leaning nature, maybe that is a need.

I’ve gone back to my needs and wants list three different times now. Each time I refine it and add to it. Sometimes I move a need to a want or vice versa. I dream about things. I want, for example, another bedroom on my house. That may not happen in 2010, but it doesn’t change the fact that I want it!

Take some time and really play with this. This exercise is deceptively simple. But when you open up to what you truly need and want, and look at how much it costs, it is one more connection to looking at the money we earn. I’ve had many clients use this exercise as an incentive to raise their fees or launch a new income stream.  It also helps you prioritize how you really want to spend your money.

Dream. And share with us—what did YOU put on your needs or wants list?