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The 50/30/20 budget is a simple plan that sorts personal expenses into three categories: "needs" (basic necessities), "wants", and savings. 50% of one's net income then goes towards needs, 30% towards wants, and 20% towards savings. [4]
From each according to his ability, to each according to his needs" (German: Jeder nach seinen Fähigkeiten, jedem nach seinen Bedürfnissen) is a slogan popularised by Karl Marx in his 1875 Critique of the Gotha Programme. [1] [2] The principle refers to free access to and distribution of goods, capital and services. [3]
In economics, a want is something that is desired. It is said that every person has unlimited wants, but limited resources (economics is based on the assumption that only limited resources are available to us). Thus, people cannot have everything they want and must look for the most affordable alternatives. Wants are often distinguished from needs.
Needs are distinguished from wants. In the case of a need, a deficiency causes a clear adverse outcome: a dysfunction or death. In other words, a need is something required for a safe, stable and healthy life (e.g. air, water, food, land, shelter) while a want is a desire, wish or aspiration.
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Maslow proposed his hierarchy of needs in his 1943 paper "A Theory of Human Motivation" in the journal Psychological Review. [1] The theory is a classification system intended to reflect the universal needs of society as its base, then proceeding to more acquired emotions. [18]
Need theory, also known as Three needs theory, [1] proposed by psychologist David McClelland, is a motivational model that attempts to explain how the needs for achievement, affiliation, and power affect the actions of people from a managerial context.
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