Totally stolen from David Bach.
GRS was talking about what our financial priorities are. The idea is you list your priorities then you break them down into tasks that you can use to complete them. So a priority might be to buy a house and to do that you need to get rid of your consumer debt, increase your credit score, save a down-payment etc.
This reminded me of one of the first sections in a David Bach book (probably Smart Couples Finish Rich) where he asks that you and your partner write down 5 basic core values that are important to you. Then check your goals and see if they really fit with your core values.
Maybe you only *think* you want a house but when you look at your list of values, having a house doesn’t really fit. For example, if your values are flexibility, new experiences, fame etc. then maybe renting and being able to move and travel is really what you want.
We did this exercise last year and I still have the envelope we used. Mine are:
Though thinking about it, responsibility is probably another really big driving value for both of us.
Our goals fit well with these priorities because they emphasize financial security and the ability to spend time not just making money. We spend less so we can save more and not kill ourselves working. We’ve chosen jobs that don’t pay as well as other jobs we could have but allow us freedom and growth.
It would be neat to see #2’s answer to this one. Here’s a list to pick from if a list is needed.
#2 will pick (as you can see, I am somewhat indecisive, and am only picking off that list, for simplicity’s sake) :
Fulfillment — counting relationships and career
Fun — counting reading, sex, sleeping, enjoying food
Growth — intellectually and in our relationship
Humor — I love this about my partner, and his humor keeps me sane
Independence — financial, intellectual (but while having interdependent relationships)
Security — emotional, financial, career, relationship — including having enough money to take care of health
Note: these are in alphabetical order, not priority order. That seems harder.
#2’s partner hasn’t weighed in… yet!
What are your core values? How do they relate to your financial goals?