{"id":6315,"date":"2019-10-18T10:58:19","date_gmt":"2019-10-18T14:58:19","guid":{"rendered":"https:\/\/goday.ca\/blog\/?p=6315"},"modified":"2021-09-30T10:42:48","modified_gmt":"2021-09-30T14:42:48","slug":"knowing-your-financial-priorities","status":"publish","type":"post","link":"https:\/\/goday.ca\/blog\/knowing-your-financial-priorities\/","title":{"rendered":"Knowing Your Financial Priorities"},"content":{"rendered":"\n

Do you have money goals? Most people do. Or at least have something they hope to achieve one day like buying a house, a new car, or going on that bucket list trip. However, the bigger question is if you are keeping track? We are always looking for ways to help you save more money so you don\u2019t need to depend on payday loans<\/a>, or at least only need to when you\u2019re in a crunch. Ask yourself what you\u2019re willing to do to put your financial future first. Yes, life happens, expenses pop up and you can\u2019t plan for everything financially, but it\u2019s easy to completely spiral out of control and lose track of your spending and where your money is going. So how do you keep track of your finances?

Take a look at your budget you have in place, if you even have one yet, and look at what your savings account looks like. If you are prepared for a financial emergency, do you feel confident with your finances? Everyone has their own way of how they like to manage their money, and prioritizing the things that are important to you (but also the necessities) is one of the reasons we\u2019re here writing this article. So keep reading for some of our tips to help you identify and track your financial priorities.

First off, let\u2019s talk about determining if you need a lesson in money<\/a>. Read through some of the below and ask yourself if these are some of the problems you face when it comes to your finances.

You have gone over budget <\/strong>

What is one key indicator that you may need a lesson in money? You are going way over budget and struggling to make ends meet despite knowing you have a steady income coming in. We talk a lot about budgeting<\/a> here at GoDay, and it\u2019s because it\u2019s one of the most important things you can make and follow to stay on top of your finances and have the means you need to pay for those priorities in your life.

A money tracking system or budget will help you know matter what your financial priorities are. Spending money can be easier than saving money, we all know that. But if you are able to identify where you\u2019ve gone over budget, what you\u2019re overspending on, etc. then you\u2019ll be able to have better control over how you can save.

When it comes to creating your budget, and game plan, you want to make sure you are keeping track of all the money that is coming in and what money is going out. This can be overwhelming for people and often the reason people don\u2019t stick to or have budgets. But there are a ton of (free) tools <\/a>out there to help you stay on track and eliminate the burden of keeping all your receipts and trying to pour over a spreadsheet.\u00a0

Are you prepared for an emergency?

<\/strong>What happens if your basement floods unexpectedly? Someone ends up in the hospital and you don\u2019t have health insurance? You get in a car accident? You get laid off from your job? You need to fly out because a family member is sick? The list goes on of unexpected emergencies that can happen. It\u2019s life. You can\u2019t predict when something is going to happen, but you can be ready for it if and when it does. Having an emergency fund<\/a> <\/strong>in place is part of being responsible with your finances. This is more than just a savings account. This should sit separate and not ever be touched until you absolutely need it. It should be ready for if the unexpected happens<\/a>.

<\/strong>How do you start to prepare an emergency fund? Financial advisors recommend that your emergency fund cover at least three months of living expenses. Don\u2019t stress, you can start to build your emergency fund over a time frame that works for you, but don\u2019t put it off, and don\u2019t drag it out, because again, you don\u2019t know when an emergency can occur. Emergency funds can actually help alleviate stress in the long-term when it comes to finances as you\u2019re not always walking on your tiptoes hoping and wishing nothing happens to you that will require cash to be in the bank.\u00a0

Curious about how much you should have in your emergency fund? <\/em><\/strong>RBC has a tool<\/em><\/strong><\/a> to determine how much you should have saved in case of an emergency based on your current salary.<\/em><\/strong><\/p>\n\n\n\n

How are you making spending decisions?<\/strong>
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<\/strong>Your budget will play a huge role in identifying how you are making spending decisions and where the opportunities are to save and cut back. When it comes to your financial situation there are the things we have<\/em> to pay for – like bills, rent, mortgage, car, the list goes on. These expenses aren\u2019t going to disappear and are a priority. But do you have all of those payments planned out? Do you know when those bills come in and when they\u2019re due? Having an idea of the schedule of your bills will help ensure you have the savings you need to pay each one of them to avoid interest and late fees

On top of those expenses, you have your everyday expenses. These are the ones we often lose track of the most. That morning coffee you grab at Starbucks. Your lunch everyday at work. That cute new scarf you wanted for fall. These can really put you in a financial pinch quick, and add up. This is where it\u2019s important to identify your  financial wants and financial needs<\/a> and work that into your budget. By tracking your budget, you\u2019ll be able to easily see where you\u2019re being irresponsible with your money and how you can improve.

Are you spending money you don\u2019t have? <\/strong>
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<\/strong>Credit cards<\/a> can be both a blessing and a curse, and there are so many people out there that just don\u2019t know how to use them responsibly. It\u2019s easy to rack up credit card debt, and since they often have a hefty interest on them, it\u2019s going to feel like you\u2019re drowning and can\u2019t get out of the deep hole you buried yourself in from overspending more money than you have coming in.

Along with credit cards, there are lines of credit, and other examples of spending money that you don\u2019t physically have or need to pay back. If you are someone that often finds yourself not being able to pay off your credit card, see if there is an option to change everything over to cash, or debit versus even using your credit card at all. Leave your credit card at home when you leave the house so you\u2019re not tempted, and really kick the bad habit of charging everything on your credit card to rest.<\/p>\n\n\n\n

When it comes to your finances, you all have particular obligations and responsibilities<\/a>. It can be a lot of pressure to pay all your bills, but also still have extra money to live the life you want. How do you learn to prioritize without ending up with nothing in your savings? Here are some things to walk you through it.

Understand your finances

<\/strong>No matter what your age, or financial position, we all have bills to pay. Our responsibilities financially change at different stages in our lives, from schooling, to kids, to retirement, and you need to stay on top of your financial obligations no matter what stage in your life you are at. How do you do this? Well understanding your finances is the first step. This is where your budget comes in, but another way to get started on this is making a list of everything you\u2019re spending money on and ranking them by importance. Ask yourself: do you really need the things that fall on the bottom of your list? Could you live without them?<\/p>\n\n\n\n

Start saving and stop spending<\/strong><\/p>\n\n\n\n

The financial responsibilities you have should always be a priority. So where do you start? First off, what are you saving for? Or what should<\/em> you be saving for. Then from there, look at your best options and your savings goals, and set aside a reasonable amount in your budget you can contribute consistently. You can be saving for all sorts of things, and a mix match of the below at one time: <\/p>\n\n\n\n