What are your life priorities? When asked that question, what comes first into your mind? Do you picture yourself writing novels, leading a certain business, traveling the world…what do you really see?
How you want to live your life determines how you set your priorities. The priorities of life are in various aspects but financial priorities are quite dominant. You are always paying bills, paying tickets to have vacations and so on. Knowing what should come first when thinking about personal finance can be quite hard considering so many thoughts coming in.
Readers are constantly asking how they should prioritize. Whether it’s ok to save for emergency fund, retirement or pay debt first. So here we are juggling paying bills and saving for emergency funds, retirement and so forth but the question is…What do you really want in life? Maybe if you first work on writing that book while living on that little emergency fund you would never have to worry about money anymore. Don’t take that seriously, am just saying…it’s such a big leap though it could work:-)
Setting financial priorities is easier when you know what you want in life. So how does one set financial priorities? There is no textbook order of setting financial priorities, maybe some skilled minds helping you out with whatever you already have in mind. I’m still working on getting my money habits to near perfection and so I thought I’ll lay out my financial priorities.
What Are My Financial Priorities?
1.Avoiding new debt– I still have a bad debt which I’m still working on clearing that’s why keeping away from a new debt is my number#1 priority. Emergency expenses could slip me back to the debt tunnel but luckily I have accumulated an emergency fund to cover me on that. I just hope any financial emergency that’ll arise won’t need a bigger emergency fund(crossing fingers:-))
2.Basic needs– This is one of the things I can afford and intend it to keep it that way. With my increasing debt some time back, I would put myself in tight positions such that I’ll pay for my luxuries and fun and come to think of housing later. I intend to keep the level of my basic needs this way and above. Nothing less.
3.Investing– I’ve been really looking out for any amazing investments I can lay my hands on of late. After getting what I need and paying my debt partially, my mind gets on to the saving part instantly. Overspending is still a nagging feeling once in a while but I’ve managed to keep my eyes on the investing road for quite some time.
3.Emergency fund– I am really excited about growing my emergency fund. To keep a financial balance I have to make my emergency fund fatter and it is really going up the ladder on my list.
4.Frugal traveling– Some time back I would just want to travel and whatever the amount, I won’t bother to find out how I would reduce costs. Writing about personal finance has not only opened up my mind about setting financial goals, it has also given me a sense of responsibility to practice what I write. Writing about frugality has changed my plans, I have started prioritizing how I can reduce these costs in traveling.
5.Fun, wants and more fun– So I’ve not been missing occasional treats for myself. I’ve been reading a lot lately and it has been amazing rather than the way I’d feed on spending when bored. I’ve grown really patient when shopping and it still gives me a thrill when I wait to buy something I really like and planned for.
When I was writing this 600-word article(in my PJ’s), it made me realize a lot in my financial life. I suggest you put down your financial priorities and see how strong you have grasped your financial life. Are your priorities similar to mine or are they entirely different? If you feel like sharing it will be really amazing for interaction on the comments section. You think I should have other priorities? Let me know.