Setting Financial Priorities

Money is a source of comfort and security, not a source of anxiety and stress. We acknowledge that this is a bit of a stretch for most people. But that’s the great thing about a goal; it is intended to be something that we strive to attain.

You can spend money on multiple things.  You can buy something – a car, a haircut, a vacation.  You can give it away.  You can invest in an asset that is intended to provide longer term value through price appreciation or income.  You can save it until you want or need to spend it.

Money is a means to an end.  It is critically important to identify the goals that we have in our life and then make certain that our money is used to help achieve those goals.

Take a few minutes to think about and record your life goals – what’s important to you and the loves of your life.  It may help to think in terms of over the next year, the next 5 years and finally some nebulous long term goals.  Here are actual goals from one of our Town and Country Bank team members:

Short term

  1. Complete saving for our 8 month emergency fund
  2. Continue saving for our house in the country
  3. Provide assistance to family members when they need it
  4. Support our church and charitable organizations that are important to us
  5. Put as much money as possible into our retirement accounts

Medium term

  1. Build our house in the country
  2. Provide assistance to family members when they need it
  3. Support our church and charitable organizations that are important to us

Long term

  1. Retire at 66 with no need to take on additional work
  2. Be able to support ourselves throughout our life without relying on the state or government
  3. Provide assistance to family members when they need it or when we want them to have something special
  4. Leave something, but not too much, behind for the family and church
  5. Enjoy a long retirement doing the things we love

Now that you’ve recorded your goals, set them aside for a day or so and then revisit them.  Is this the list?  If so, pull out your budget spreadsheet and your personal net worth statement to see if your spending, savings and investing matches your goals.  Make adjustments as needed.  Revisit your goals and your spending to make sure they remain in step.  Make tweaks when necessary.  And remember to maintain a balance between your real life and your goals.