Prioritize Spending - first things first

Failure to prioritize spending is a "here and now" problem as well as a problem waiting to bite you in the future.

When it comes to managing money, you should have priorities assigned to your spending so you know what you're going to do with your money.

If you understand that money gives you options, then you have an ability to prioritize. If you have little money to spend, then you'll find that things tend to prioritize themselves.

Let's look at the type of things we need to assign priorities to. Not everyone has the same priority, but then, not everyone is successful with managing money either.

Things that deserve priority consideration in my life:

  • housing
  • health
  • employment
  • safety
  • education
  • family
  • communications
  • transportation
  • food
  • wealth
Things that don't deserve priority consideration in my life:
  • entertainment
  • hobbies
  • leisure
  • recreation
  • sports
  • pets (except the Dude of course)
  • fashion
Much of how you prioritize things will depend on your current situation and what you value. Your success at managing money will depend on how you prioritize spending in your life and how well you stick with your priorities.

As you can probably imagine, there are priorities within each of the groupings above. For example, people with low income often forego medicine and instead direct that money towards food. In their mind, food is a higher priority. Sometimes it is.

In any event, we all need to get better at putting first things first, and that means we need to prioritize spending. Much of our ability to prioritize will depend on how well we can distinguish between needs and wants.

Something else that will help us prioritize is being able to identify marketplace alternatives and less expensive substitutions for the things we need and want. This can help give us options to consider, and sometimes having more to pick from can help us make better decisions when we prioritize where our money is going.

Remember, first things first. As the old saying goes, "Don't put the cart before the horse."

If you're focused on frugal living, you have to prioritize what you are spending your money on.

Done with Prioritize Spending, back to Managing Money

There certainly is a broad scope of topics here at Frugal Living Freedom. When you think about it, money permeates so very many activities in our lives, therefore, being frugal encompasses a wide range of interests, from being employed to taking a vacation, and just about everything in between. Enjoy the variety, pick up some new ideas, and start making frugality a part of your signature.

I'm a big proponent of being debt-free, and I mean entirely debt-free - no mortgage payment. It's not essential for financial freedom, but you'll love the feeling once you get there. If you didn't have a rent or mortgage payment, how much more could you do for yourself with your current level of income? I suspect plenty.

If you ever hope to see an abundance of wealth, you need to plug the hole in your boat. The wealthy don't necessarily make lots of money, instead, they know how to hang onto what they make, and make it work for them.