Time and time again I see people not understanding their priorities when it comes to money. Knowing your priorities when it comes to budgeting is EXTREMELY important.
Priority as defined by Google is “a thing that is regarded as more important than others”.
What is it that you ultimately want in your life?
Do you want to be debt free, to be materialistic and have everything, do you want to buy that house? Or do you just want to ensure you have a roof over your head and keep the electric on?
Priorities are not ALL the same for each of us and it’s important to be understanding as to everyone’s different priorities.
To me everyone’s priorities should be at a minimum roof over head, electricity and food. But I have seen so many people in my time in real estate and as a budget coach not have these as their priorities.
Priorities can also be identified as wants and needs and putting your NEEDS before your WANTS.
Why is it important to have your priorities for you budget?
Its important because you need to know that you are spending your income in the correct places, that you are putting your NEEDS before your WANTS.
By knowing your priorities in your budget for example roof over head, then electricity and then food, if you only had a limited amount of money that you then put your money to these three things first.
So to create your money priorities for your budget…
Write a list down of everything that is important to you for you to pay and your goals. You can include your necessities to your wants. From paying your rent or mortgage to saving for your retirement.
Once you have created your list, then place those items in order of importance.
Then once you have figured out your order of importance input that into your budget and allocate your money in that order.