What are your priorities?

[jpg7n16]

My answer pretty much boils down to 3 things:

1. Necessities
2. Savings
3. Non-necessities

well true. how do you prioritize your savings?

[disneysteve]

well true. how do you prioritize your savings?

1. Retirement
2. Non-retirement
3. Daughter's college

[JDS]

My financial priorities:

1. Cover necessities, food,clothing and shelter.
2. Build an emergency fund.
3. Increase retirement savings in three years from 25% to 30% of income.
4. Pay off mortgage early.
5. Pay off student loan. (very low interest loan).
6. Stay out of credit card debt.

[MonkeyMama]

I mostly agree with Jaine.

1. Pay my bills on time
2. Minimize taxes (HSAs, 529s, 401k, ROTH, etc., etc.)
3. Retirement savings (in consideration of #2, maxing out ROTH is my current priority)
4. Not getting into debt in the first place (ample cash savings)
5. Helping others (kids' college/charity)

I do have a mortgage and my spouse's income goes heavily to pay it down, when he works. IT's of extremely low priority to pay down extra on it, with our current single income. It is one debt exception for a variety of reasons (there are others).

I think my #3 and #4 are very closely connected. I will have friends who max out retirement and be very much in debt and cash poor. They may not agree with us, but if we can't use debt to buy things, we end up spending a lot less money in the end. In the grand scheme of things, they are rather equally important, and very inter-related. The less we spend, the more we can save. With debt, I find it a blurry line on what we can and can not afford. Sticking to cash makes it pretty black and white. I don't think it has as much to do with saving interest as it just limits our spending more easily.

[jpg7n16]

A thought I just had was, "I wonder why we don't move giving up higher on our priorities?"

What would life be like if we made giving a higher priority?

JDS - I think your #6, is encompassed in #2. I think of the EF as debt resistance at times. It keeps us from getting into/further into debt. Your list is very similar to mine

MM - yeah I think there's a balancing act we all do in life. You can't focus on #3 to the extent that it compromises #4, and makes you take a finacial step backwards. Your friends should listen to you more

I'm also noticing that a lot of people focus on minimizing taxes as a high priority. I guess I haven't really focused on it much, as I've got no wife, no kids. The only time it comes into play for me is my "401k or roth" decision. Now that I think of it, I don't have an HSA either. So maybe that's why I don't worry about it... hmm

[Scanner]

1. Health
2. Career
3. Family

i seem to focus and perform the best when those priorities are set for me.

[maat55]

Pay bills on time.
Pay taxes
Maintain 6 month EF
Fund retirement
Fund auto fund.
Wants and charities.

[cypher1]

Originally it would be:

1. Pay bills on time/no new debt
2. Build EF
3. Necessities
4. Pay myself
5. Family-assist parents
6. Personal interest/hobbies
7. Retirement Funds

Recently its more of:

1. Pay myself
2. Bills/necessities
3. Fund 401k/minimize taxes
4. Build EF/Retirement
5. Family-assist parents
6. Personal interest/hobbies

Great topic, a lot of areas I thought about it, never figured a certain order for priority.

[snshijuptr]

Overall:

1. Needs
2. Savings
3. Wants

In Savings:

1. Home Down Payment
2. Not incurring more debt/fees
- Save for insurance, registration, etc periodic payments
- Save for next car
(We stop here now until DH gets his job back)
3. Retirement
- Roth IRA - our income will (hopefully) never be this low
- 403(b)
4. Fun Money
(We stop here until down payment goal is reached)
4. Savings goals in order of time
- Beef EF to have a baby
- Save for upcoming student loan payments

If we currently paid debt payments those would be first on the list.

[jpg7n16]

1. Health
2. Career
3. Family

i seem to focus and perform the best when those priorities are set for me.

Are those in order? You really put career before family?

Pay bills on time.
Pay taxes
Maintain 6 month EF
Fund retirement
Fund auto fund.
Wants and charities.

Pretty solid. I think your's and mine are pretty similar. You just don't list debt - probably cause you don't have any.

Originally it would be:

1. Pay bills on time/no new debt
2. Build EF
3. Necessities
4. Pay myself
5. Family-assist parents
6. Personal interest/hobbies
7. Retirement Funds

Recently its more of:

1. Pay myself
2. Bills/necessities
3. Fund 401k/minimize taxes
4. Build EF/Retirement
5. Family-assist parents
6. Personal interest/hobbies

Great topic, a lot of areas I thought about it, never figured a certain order for priority.

Thanks! How is "pay myself" different from the 401k/retirement? I've seen many people with that on priority, with retirement listed later, but I've never really understood the difference.

I like that you give to your family, before your personal desires. That's really good to see.

Overall:

1. Needs
2. Savings
3. Wants

In Savings:

1. Home Down Payment
2. Not incurring more debt/fees
- Save for insurance, registration, etc periodic payments
- Save for next car
(We stop here now until DH gets his job back)
3. Retirement
- Roth IRA - our income will (hopefully) never be this low
- 403(b)
4. Fun Money
(We stop here until down payment goal is reached)
4. Savings goals in order of time
- Beef EF to have a baby
- Save for upcoming student loan payments

If we currently paid debt payments those would be first on the list.

I put necessities ahead of debt payments. If it's between paying the credit card (which I don't have anymore) or food to live on or a roof over my head, I'd choose the food/shelter.

I'm not saving for a home right now - but if I was, I'd probably do my 401k 1st and save some towards the house from whatever's left over. How does that work the other way around... I mean, how do you determine what you'll save for the home, before starting retirement savings? Like $XXX/month to home then from what's left to the Roth?

And you're a Roth person. Do you get a match with the 403b?

[EconoMutt]

1. Hookers & Pharmaceuticals
2. Protection money to 3-Fingered Louie
3. Bookie debts
4. Lottery tickets
5. Payday loans
6. Ramen
7. Liquor store
8. Child support
9. Rent-a-center payment for 52" flatscreen and surround sound
10. BMW 7 Series car payment
11. Rent
12. $ to the homeless
13. Pay down Prosper loan

I cannot believe you put Hookers and Pharmaceuticals before your Protection Money.
Where are your priorities !!!! :-)

[cypher1]

jpg7n16:

"How is "pay myself" different from the 401k/retirement? I've seen many people with that on priority, with retirement listed later, but I've never really understood the difference.

Not to go off topic, and I understand "Pay myself first" is more of put money aside first before other expenses, but IMO that term is much more open to interpretation. I apologize if this has been discussed before, but the more i think about it, the pay myself terminology could incorporate contributing to build EF, 401k, IRA, minimize tax, and retirement funds. I mean for all of those priorities, aren't you directly choosing/investing to pay for yourself first by those different options?

"I like that you give to your family, before your personal desires."

I value my time just as much as monetary funds. So instead of always thinking of financially funding them, i consider contributing to family priorities may consist of "volunteering" my time, IE PC tech support, mowing their lawn, or fixing their cars/home.

Just my thoughts ^_^

[snshijuptr]

I put necessities ahead of debt payments. If it's between paying the credit card (which I don't have anymore) or food to live on or a roof over my head, I'd choose the food/shelter.

I'm not saving for a home right now - but if I was, I'd probably do my 401k 1st and save some towards the house from whatever's left over. How does that work the other way around... I mean, how do you determine what you'll save for the home, before starting retirement savings? Like $XXX/month to home then from what's left to the Roth?

And you're a Roth person. Do you get a match with the 403b?

I meant that Debt would come first in the Savings category.

I have set aside $800 for our home. We have so many goals right now with pretty set end dates and cost totals that I am able to calculate how much we need to be saving.

We don't get any match on our retirement because DH is a teacher with a pension. I'm a grad student so I don't even have access to retirement. Thus we will (hopefully) never be earning any less than we currently do.

[swanson719]

I don't know as if I have a set priority scheme.

1 - Necessities.
2 - Roth IRA.

There isn't much left after that. We have a fully funded emergency fund and are debt free aside from the mortgage. We try to keep $1,000 in general savings. We claim exempt on taxes and because we max out the Roth, we are able to file a IRS From 8880 which gives us $2,000 extra on our tax return.

When DW goes back to work her income will be entirely devoted to paying off the mortgage. I'm a government employee, so I have TSP as an option, but because of our income TSP is an either/or against the Roth and I prefer the Roth.

[Stuartthomas]

my financial necessities:
pay off my student loan
car(already have home)
loan for starting my own business
make a solid bank account
travel around the word