Hull Financial Planning Personal Finance FAQ Series: How Are Our Priorities Dictated by Our Financial Situation?

Which comes first? The chicken or the egg? In this case, do your priorites come first, or does your financial situation dictate your priorities?

Take a look at the video below and find out what to do.

How Are Our Priorities Dictated by Our Financial Situation?

The transcript follows.

You should always know what your priorities in life are regardless of your financial situation. You could have more money than Bill Gates, Warren Buffet, and Carlos Slim combined but still not want to waste money. After all, money represents an exchange of value for what you created and added to the world.

Still, with limited money, you must be very focused on your priorities. I group them into four categories:

  1. Obligations to yourself: this includes food, shelter, transportation, and clothing. I include your immediate family in this.
  2. Obligations to your family: this includes parents and siblings.
  3. Obligations to others: this is debt. You gave someone your word that you would pay them back for money that you borrowed. Your integrity rides on keeping that promise. If we can’t rely on human interaction and interchange, society breaks down. This includes keeping our promises.
  4. Things which are important in your life. These would be your longer-term goals which will make you fulfilled in your life.

It’s not until you take care of your obligations that you can start to spend money on your dreams and goals.

Related posts:
What Are Your Priorities in Life?
Get Off Your Hedonic Treadmill

Published by

Jason Hull was the co-founder of Broadtree Partners, a firm that acquires $1-5MM EBITDA companies. He also was the co-founder of open source search consultancy OpenSource Connections, a premier Solr and ElasticSearch firm. He and his wife FIREd (financial independence retire early) at 46 and 45, respectively. He has a BS from the United States Military Academy at West Point and a MBA from the University of Virginia Darden Graduate School of Business. He held a CFP certification from 2015 - 2021. You can read more about him in the About Page. If you live in Johnson County, Texas or the surrounding areas, he and his wife are cash buyers of Johnson County, Texas houses.

Leave a Reply

Your email address will not be published.