Needs VS. Wants

When spending money, do I think - Do I need this? Is it a necessity? Or do I want this? For example, if I want to go on a vacation and I am sooooo in the mood of going to Hawaii.

Do I need to go to Hawaii? Or will a nice local hotel suffice.

Obviously, life has necessities, but I need to differentiate. Is this indulging or will it really be worth it to me in the long run.

3 QUESTIONS TO ASK YOURSELF WHEN PURCHASING SOMETHING:

1. How long can I put this off for?

2. Will it affect others if I choose to purchase this item?

3. Is there a way to lower the price?