We talked about what is important to you which has to do with setting priorities for your future. We’ll get more in depth on this in this post.
Setting priorities has to do with careers as well as other decisions, so start to make a list of things that are the most important and set priorities that include reasonable goals.
For instance, if you have a goal to get a good job within the next 5 years which will be about a year after graduation, you should describe what it will look like. Don’t just say “I will get a job.” Instead say, “I will work in the financial technology industry building new AI programmes for large businesses.”
Another example is, “I will be a freelance writer and write journal articles for major publications that talk about finances for millennials.”
Whatever the goal you have in mind, it’s good to prioritize.
Look at this book by Jesse Mecham called, You Need a Budget. This is an entire system that Mecham created that assumes you should give every dollar a job and you need to use your money according to your best priorities.
In other words, if it’s more important for you to put money into a new car then most of your money other than bills and accessories should go to saving for that car. If you follow this plan most of the time, you will probably come out with less debt and you will always know that you’re staying on your goals.
Never again will you wonder where your money is going.
Write down the top three of four priorities but you have for yourself over the next 5 years and then focus on each one as you set goals for your future.
I have compiled a simple list that you can follow as a guide.
1. Work and career advancement
2. Friends and social activities
3. Financial freedom
4. Security and retirement
Using this list as an example, we see that this person has put working career advancement as their number one priority. So they should work on tasks that help make their level of skill more marketable to employers.
Someone who wants to get a better job should save money for both school and self-improvement so that your chances of getting a better job improve.
If friends and social activities is high on your list, you can make a note to yourself to try to meet new people or perhaps join a group that you like or whose values adhere with your own. This will give you an opportunity to meet more people and to engage on a higher level to build friendships.
This may or may not cost money but it is still an investment of your time. Financial Freedom is number three on this person’s list which is important to all of us to some degree. Since it is not a number one or two they may just put a little money away right now and increase it once they graduate from college.
Being financially free means that you’re free of debt and while you’re in college you will carry some debt with you. But it is certainly a good long-term goal. So you can be saving as much as you can along the way then increase it when you get out of school and get a good job. The last thing is security and retirement and this is probably something millennials don’t think about a lot but you’re never too young to start.
Organize your money by downloading cool fintech apps like simple.com a purely online banking system or mint.com to set goals for yourself and organize your finances. We hope this helps you get the wheels rolling about what is important to you and how to set priorities.
Then focus on matching up how you are spending your money with your priorities. Remember the more you invest the more you’ll get back when you invest in a good thing and are willing to work hard to get it!