How to Manage Your Financial Priorities

by Miranda Marquit · 2 comments

how to manage financial priorities
One of the biggest reasons why people don’t have enough money to do what they really want is because they fail to fully grasp their financial priorities.

If they want to find financial freedom, and be able to have the money to do what’s really important to them, then they need to determine their financial priorities, and then spend (and save) according to those priorities.

Do you want to spend more on what’s important to you? Then read on.

manage financial prioritiesDetermining Your Financial Priorities

The first thing you need to do is figure out what’s important to you. Think about what you enjoy doing, and what you should be taking care of in life.

Some items that need to be taken care of include your housing payment, utility bills, and other obligations. However, you might find that you are spending money on eating out for lunch each day, and then upset that you don’t have money to go to the movies.

If going to the movies is more important to you than getting a paid-lunch each day, you can change things. Pack a lunch, and use the money you save to go toward an evening or two at the movies.

Sounds simple right?

The key is to actually take some time to honestly evaluate what motivates you, and what you enjoy. If you won’t be able to afford something all at once, you can make a plan to help save up for it.

Spend less on things that don’t matter as much to you until you have that sum saved up. Be honest as you determine your priorities in order to maximize your benefit.

Make a Plan to Fund Your Priorities First

After you know what’s important to you, and what financial goals you hope to meet in time, you need to plan your spending. Create a plan that will allow you to meet your most important goals first. Make a list of what you spend money on. Make sure your needs — housing, food, transportation to work, clothing — are taken care of first.

Then, make sure your obligations, including your debt pay down plan, are covered. Next, consider setting aside money for the future (retirement fund, emergency fund, etc). Then list the “extras” that you do for fun.

If you are in debt, you might find that you don’t have a lot of money to do some of the “extras” right now. Making paying off your debt a priority, and paying it off as quickly as possible, will free up money eventually. It can be painful to make these changes, but they need to be accomplished if you are serious about achieving financial freedom.

Bottom Line

Once you have your priority list made, then you can rest easy knowing that your money is going to the places that matter to you most. Periodically update and look at that list so you don’t stray from your plan. As long as you stick to a spending plan that covers the most important items first, you will be more likely to feel satisfied with your financial situation, and your life.

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  • Amy Shaul says:

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  • Danielle Ogilvie says:

    I don’t think a lot of people actually sit down and list down their financial priorities. I feel like it would be an enlightening exercise for everyone to do this.

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