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

Why isn’t my credit score improving?

I’ve been paying my bills every month on time and nothing changes on Credit Karma. I feel like I’m stalking the app. What should I do? Submitted by Michelle S. Congrats on paying your bills on time! Can we just celebrate that for a moment? What Impacts Your Credit Score Paying your bills will not… Read more

Should I Rent or Buy a Home?

Renting versus owning – how to determine which is right for you Choosing whether to own or rent a home is a big decision. The “right” answer for you will be deeply personal, based on a few key considerations that we will explore below. 1. Examine your personal values A good place to start is… Read more

How to Save Money Every Day

Making simple changes to your spending can be an easy way to help you start saving. Learn how to save money on everyday expenses like groceries, transportation and entertainment. This video will show you easy changes to make so you can start saving. Here are some of the fun ideas suggested in this video: Make… Read more