How to figure out your financial priorities

How to set financial priorities

By David Fielding on January 7, 2016
Estimated reading time: 1 minute

Start by determining your cash flow, then move on to debt and savings

a podium to demonstrate how priorities can be made — Unsplash

Whether you’re just starting to get a handle on how to set financial priorities or you’re an old pro looking for an easy check-up, the Priority Pyramid is the perfect place to start. MoneySense contributing editor Bruce Sellery created this riff on Maslow’s Hierarchy of Needs to help separate our most fundamental financial needs from the rest. And let’s be honest, even the financial savviest among us has to admit that bad habits do creep back in from time to time. To help you determine how to set financial priorities and where you should focus your energy, start at the bottom and move your way up as you check off each financial milestone. “Because it’s inaccurate to simply get a handle on your money,” says Sellery. “You need to keep a handle on your money.”

This pyramid shows how to set financial priorities based on your needs

Answer these questions honestly for better insight on your financial situation and what your goals should be. financial pyramid, with cashflow at the bottom (1), debt (2), savings (3), taxes (4), investments (5) and returns (6) at the top.

financial pyramid, with cashflow at the bottom (1), debt (2), savings (3), taxes (4), investments (5) and returns (6) at the top.

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How to set financial priorities

This pyramid shows how to set financial priorities based on your needs

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