Spend Money Where It Matters Most

spending money

One problem people have when it comes to money is prioritizing. They either don’t have the ability to sort out what matters most, or they simply can’t decide what’s most important. It’s a skill people need to master because achieving financial success (without a Trump-sized income) requires prioritizing. You have to put your true needs first, and then decide how to allocate what’s left for your wants. Even within your needs category, there are priorities and trade-offs to be made if you want to best manage your money.

Many people assume, for example, that their electric bill is a fixed expense. “Oh, it’s always $200.” Well, that may be true un


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3 Responses to Spend Money Where It Matters Most

  1. Gailete says:

    In prioritizing your money when you little of it, you need first of all to spend it on the necessities like your mortgage/rent, utilities, food before using it on nonessentials. Even the necessities can be tweaked, if you really don’t like or can afford your apartment or house can you sell and move? Utilities bills as you said can be adjusted just by use. I saw a huge example of this with our tenants water/sewer bill for this part quarter. It came in $90 LESS than usual. I thought there had been a mistake and then I remembered that the guy’s girlfriend had left him, and he had spent a lot of time at a friends since she had also seen fit to swipe his TVs and most of the furniture. So we had an empty house for part of the time and mostly no daily showers for her or baths for her kids and no toilet flushing for two less people and that bill just about disappeared. As we have to pay that bill out their rent that we collect, I will remember this incident the next time we have renters and I will charge a surcharge for EACH person that will be living there. So it is possible to tweak those utility bills. Commercials/movies/TV make it look like everyone in the US is taking daily showers and shampoos, but as I have gotten to the point of not being able to do so physically, I talk to other women about it. I’m finding that many don’t, they still look and smell clean, even my hair cutter when I saw her last, admitted to not washing her hair for the last couple days. Think of the water savings and shampoo/conditioner savings! Not saying walk around dirty and smelly, but if you just have an office type job and aren’t doing physical work that makes you sweaty or dirty why are you thinking you need a daily shower, especially if you money is tight, see what going down to every other day will do to the water bill.

    Don’t forget that most water bills are also tied into sewer bills based on water usage so lowering the water bill also lowers the sewer bill. Think about what saving $90 a quarter would do for your budget. Even a $25 savings would save you $100 a year. when we got a new washing machine our water bill dropped $20 a quarter with no changes other than the washer! You can make these bills be less than normal by making some changes in lifestyle.

  2. Jared says:

    You make an excellent point because all expenses are variable. You can turn off lights to save electricity. There are food options and different stores to consider to save a few dollars. There are many ways to become more financially secure.

  3. Ryan Meyer says:

    Jennifer is certainly correct; most people find it difficult to prioritize their spending. Rethinking how you can reduce monthly fixed expenses is great advice. Another great way to spend where it matters most is to list and prioritize all of your wants. It is easy to make new wants a top priority without comparing to our other things on our want list.

    Ryan Meyer

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