Getting Your Financial Priorities Right


Have you ever noticed that not everyone seems to have the same priorities when it comes to what they spend their money on?

While some people will dedicate a huge amount of their monthly budget to food, others will grumble about every dollar that they have to spend on food while spending crazy amounts on clothes, gadgets or some other things.

So, how can you make sure that you get your spending priorities right?

Understand Your Priorities

We each have different things that we need or want from life. Maybe you desperately want to buy a house, a car, or some other item that you view as being essential to your happiness.

By taking some time to think about your priorities you can better understand what it is that most matters to you. This will give you a far better chance of achieving it, by focusing your mind on what it is that truly motivates you.

On the other hand, if you don’t understand what your own priorities are then how can you possibly expect to make your dreams come true? If you don’t know what your own hopes and dreams are then you have next to no chance of making them a reality.

Understand the Consequences

Of course, it is easy to put off your priorities time after time. After all, there will always be next month or next year to do what you want to do, right?

Thinking in this way can be seriously detrimental to your financial well-being. If you keep on putting off the saving that you need to do then you could eventually find that you can’t ever do what you wanted to do.

This is why it makes sense to spend some time thinking through the consequences of what you spend and save. By simply taking a few minutes to work through some figures it should hopefully be clear to you what you need to do.

In this way, you can make your spending and saving decisions based on a decent understanding of what the consequences of your actions are. Otherwise, you would just be grasping around in the dark and possibly making bad decisions.

Be Consistent

Perhaps the biggest and most important factor of all is that you need to be consistent in what you do. If you establish your priorities and work out how to achieve them then you need to follow through with your ideas and make them happen.

Being consistent is possibly the most difficult thing of all in this situation. It is relatively easy to work out your priorities and then to plan how you can turn them into reality.

The really difficult part lies in sticking to your plan month after month. There are sure to be some times when you feel your willpower crumbling because you want to buy or do something that isn’t on your plan.

Because of this, it can make a lot of sense to start off with simple, short term priorities. Maybe you need to save up for a small deposit for a car or for something for your house, for example.

By getting used to focusing on your priorities in a short-term situation, you should then be able to follow it through to the end and get the satisfaction of doing it well. This will give you the encouragement and confidence that you need to keep on saving and spending in the smartest way that you can.

Has there been a situation in which you identified a top priority and then did everything possible to make it come true, even when it seemed really difficult to achieve?

One Response to Getting Your Financial Priorities Right

  1. Great points all around. Prioritizing goals based upon an understanding of consequences and one’s values is a powerful method for success.

    A few months ago, I prioritized every spare dollar toward paying off my student loans and was able to eliminate over $17,000 of debt in just 54 days. It was tough, but I was sick of paying interest and did not want to take on the risk of investing that money when the market looked to be peaking.

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