Are You On Track? Reevaluating Your Financial Priorities

Crash Course in Financial Flexibility

Our lives are complex, and that’s usually a good thing because it keeps life interesting. But when it comes to our money, the more complex our situation, the more challenging it is to manage competing priorities.

What’s the Opportunity Cost?

We suspect you have more than one thing you want to do or accomplish. Each dollar can only do one thing (that’s called an opportunity cost), so you must be ready to decide which is most important when your priorities shift, even if only for a short period of time.

Let’s Re-Prioritize

Make a list of everything you want to do that requires money, set a dollar amount and a date (sound familiar?), prioritize the list, and set an amount to save for each goal.

Financial Priority Amount You Need Date
Emergency savings $1,500 12/2017
Vacation in Costa Rica $3,500 12/2018
Stuff that comes up Not sure No idea

Life will continue to happen. You may have new savings goals or changes in your life or your income. When new opportunities or challenges arise, look at them in the context of your existing goals and decide how to allocate your money. Your priorities are not always fixed and you may need to be flexible. Remember: your list is a guide, not a straight-jacket.

Keep this list handy so you can always remember what’s important to you and what your savings goals are.


Recommended Articles

Grab a Friend! Social Strategies to Help You Save

There is strength in numbers! This is especially true when you’re trying to reach your goals and change behaviors. Weight Watchers uses this principle to support healthy eating, and Alcoholics Anonymous uses it to encourage sober living. Emerging research shows that peer support can increase your confidence and sense of control. Social support also makes… Read more

What does it mean to “pay yourself first”?

Hi, I’m Saundra Davis, SaverLife’s financial coach. Let’s talk a little bit about the golden rule of saving: pay yourself first. So many people say, “I’m going to wait and save after I’ve paid all my bills and I’ll save what’s left,” but we all know what happens then. Very seldom is there anything left. So the idea of… Read more

How to Get Back on Track After a Financial Emergency

Let’s talk about what to do when the emergency hits. We aren’t trying to bum you out, but the fact is, we are all likely to have a financial shock. What happens when you have to use your emergency fund? First, pat yourself on the back for having the funds, and then strategize. Using your… Read more