Setting Your Financial Priorities

Whether you know it or not, you are always settingyour source of income is not a job then go to the next
your financial priorities. Some may decide that a newstep.
stereo system is more important than this month'sAnd Now? Naturally, this would be your other bills. You
electric bill. This may be a little off the wall but it is stillcan even split this category a little further.
setting your priorities.First, you have your bills that are secured by property.
Anyone wanting to better manage their money wouldYou should always pay these bills first.
be wise to determine what their financial priorities areSecondly, your unsecured bills which are probably
and stick to them. Of course, if you see that thesecredit cards.
priorities will not put food on the table and pay your billsThe reason you should always pay your secured bills
then you will have to rethink your priorities.first is that it is much more likely that they can take the
Setting your priorities is simple. You just decide what issecured property and probably will unless payment is
the most important aspect of your finances and putmade. While credit cards companies are notorious for
that item on top. However, if you decide on that stereotheir threats, they very seldom follow through. I'm not
over your electric bill, you may find yourself in the darksaying not to pay them, just that they aren't as high a
with no need for a stereo.priority as your secured bills.
There are basic priorities that pertains to everyone.Next would be your savings. I really to hate to list
These are simply a matter of survival. Here is a list ofsavings as your last priority because having a savings
the basics:can prevent the use of those dreaded credit cards
Waterand help in so many ways. If you have the money to
Foodcover all of your other priorities then you should
Shelteralways put savings at the top of the list. However, if
That was a tough one.you don't have enough money to cover your bills and
What does it take to ensure that our basic needs areexpenses then your savings will have to be the first to
met? The main ingredient is a source of income to paygo.
the rent or house payment, pay the utilities, and buy theJust to recap. The below list is an example of what
groceries. This is where you start setting your priorities.your financial priorities should look like:
Before you can spend another penny, you have to1. Groceries and Necessary Health Items
take care of what you need to survive. Don't put off2. Housing (Rent or House Payment)
the rent or house payment, utilities and don't skimp on3. Utilities
your groceries and necessary health items. If you do4. Transportation
you will start experiencing money problems much5. Secured Bills
sooner than you would if you had delayed paying6. Unsecured Bills
other bills instead.7. Savings
What's next? If your source of income happens toLet's hope that you never get in the position to have to
come from a job, then I would say your transportation.decide which of the above list will have to wait. But if
You have to get back and forth to work so you canyou do, following the above priorities is absolutely
afford all of the other stuff. This would include yournecessary to ensure your survival.
vehicle payment, gas, insurance and maintenance. If