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?