Check-in with Your Financial Priorities
It’s not uncommon for our words to say one thing, but our actions to show another. But there are many benefits to aligning our financial decisions and spending habits with the goals and budget we set for ourselves!
Here are three examples of where you may need to reassess your financial priorities, and decide what decisions will keep you financially strong both now and in the future:
- Long-term Thinking About Credit: You may be online shopping more often than you should, or think the major purchase you have been considering can sit on your credit card for a few months while you work on paying it off. You may struggle to pay above the minimum amount every month, but you feel confident you’ll eventually pay it off. At the same time, you would like to boost your credit score because you know it determines your worthiness for loans and better interest rates. If you set a goal of improving your credit rating, or you want to be approved for a car or home loan someday, curb your credit card spending. Set a short-term goal of paying down your debt gradually each month, and consider pursuing additional income, until you are reassured your credit score will support, not hinder, your long-term financial success.
- Emergency Versus Reward Saving: When you set money aside, you may be dreaming of an idyllic beach vacation, or maybe a flight to Europe. If you do not have an emergency fund set up, however, even after you set a goal of becoming more financially secure, you may want to postpone your vacation dreams a little longer until you’ve built a fund large enough to cover at least one month’s expenses. And make sure you still reward yourself for your savings progress with relaxing nights at home!
- Present Spending Prevents Future Expense: You may want to save as much as possible, and so you decide to let your leaky pipes go unaddressed for several months. Unfortunately, you now have water damage, and have to pay more than you would have if you had fixed the issue early on! Consider protecting yourself from future expenses by spending in the present on necessary preventative measures that include but are not limited to: regular home and car maintenance, protecting yourself from fraud, and the addition of appropriate insurance policies.
Don’t let your decisions in the present derail your future success; make a point of checking in your financial progress and habits every few months. Leave yourself open to the idea that you may need to pivot in the present to get yourself back on track for the future!
To learn more about how to assess and adjust your financial priorities, visit the Syncis blog at https://www.syncis.com/blog/.