You need to decide what you WANT and what you NEED. Evaluate your current financial situation.  Take a broad look at the way things are now.  You can call this step taking stock, taking inventory, or even taking a step back to see the big picture.  Whatever you call this step - don't skip it! Make two lists: a WANT list and a NEED list. As you are deciding what to add to your lists, ask yourself the following questions: Why do I want it?  Or think I need it? How would things be different if I had it? What other things would change if I had it?  (for better or     worse) Which things are truly important to me? Does this match my values?