Your Priorities

Because resources are always somewhat limited, we need to make choices about what to do with our money. Do your financial choices reflect your priorities?

Is your priority to have more time? If so, you might choose to carry less debt so you can support your family while working fewer hours. You might strive to own your own home and make aggressive payments so you can live mortgage and rent-free. You might live very simply and save all your money so you can retire early.

Is your priority to educate your children? You might take on an extra job so you can save more in their college fund. You might teach them about money and saving so they can contribute once they are old enough to work.

Is your priority a fulfilling career? You may dedicate a few years to furthering your own education…even take on some school loans so you can reach your goal.

Is your priority giving to others? You might decide to give 5% of your net income to a charity that is important to you. Maybe you forego other things for yourself so you can give gifts to family members. Perhaps you are saving money so your kids have an inheritance after you are gone.

Is travel your priority? You might spend less on clothing and dining out so that you can take a trip each year or every couple of years.

This exercise is helpful when you need to make a financial decision. It isn't a matter of what you can or can't afford, but what you choose to afford. Perhaps you want to save for your child's education, but you don't think you can afford it. Yet, you look at your budget and notice that you spend $50 per month between eating out and ordering pizza. Your finances say that eating out is more important to you than saving for your child's education. Make sure your money reflects your values whenever possible.

Journal exercise
Imagine where you would like to be in 5 years, or 10 years, or some unspecified point in the future. What are your priorities? What are your goals? What is enough to make you and your family happy? At what point would you neither feel deprived nor overburdened with stuff? Write for 15 minutes about what that life would be like, what it would look like, where you'd be, what you would have, what it would feel like. What is important to you? Don't worry about how to make it happen right now; just think about where you'd like to be.

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