Why-ority on Priority

One thing about saving is that there are always multiple things you could be saving for, and each one is no small task. Saving for a home, a new car, paying debt, retirement, or just that big ticket item you’ve been eyeing.

It’s natural to want to do it all, and it is also entirely possible to do it all with the right frame of mind and strategy. I’m talking about prioritization.

First and foremost, having an emergency fund at your disposal is essential. The other goals are just as important, but none of them will matter if something were to happen and you find yourself in a situation where you no longer have income, and having enough put aside in an emergency fund will allow you a cushion to fall back on.

Next up is paying down credit card debt. Credit card interest payments are equivalent to going out back and lighting a bucket of your money on fire – The longer you take to pay down the debt, the more money you lose to interest charges.

Saving for retirement is vital in the next phase – Ensuring that you have enough set aside for your own farewell to the 9-to-5 should take priority over smaller, short-term goals. Without a retirement fund squirreled away, you may find yourself in hot water when you exit the workforce.

Finally, the short-term goals – It may take a bit longer to get there using this sequence but rest assured, with proper planning, you can make it work so that you can fill all of the buckets with a little bit each month.

Now, not everyone’s sequence would look just like that. There are a lot of factors that go into each person’s individual outlook. Planning for this kind of thing is what we do best here. Why not call us at (330) 836 7800 ext.1 or book a spot on my calendar here so we can help you establish and work with your own priorities.