Budget Priorities

Interactive Video

[A smiling couple is sitting on the couch looking at the calculator the man is typing on with one hand. His other hand is holding a couple sheets of paper.]

Narrator: “A budget is telling your money where to go instead of wondering where it went." – A quote from John C. Maxwell.

What do you think is the recommended amount of money per year to save? 

Are you feeling buried in bills and struggling to keep up? [A hand reaches up from the middle of a pile of bills.] If so, it might be time to get your priorities in line with a budget. [The text, “get your priorities in line with a budget” appears with an image of a budget.] Otherwise, you might have to face some consequences. [The arm coming out from under the bills waves back and forth.]

[The text, “Discover some financial potholes,” appears on the screen. Six flip cards are shown with the directions, “Select each card to flip.” Each card has a symbol of a car with a caution sign hitting a pothole.]

Be warned: the financial road without a budget is a bumpy one! Select each card to discover some financial potholes you could hit if you don’t consider setting up a budget!

Card 1: late payments

Card 2: fees and interest

Card 3: negative credit score

Card 4: car repossession

Card 5: home foreclosure

Card 6: disconnected utilities (electricity or cell phone)

[Numbers 1 through 4 appear randomly on screen and move to line up in order.]

Money-related priorities are broken down into needs and wants. [The words “needs” and “wants” appear at the bottom of the screen.] Needs are the number one budget priority. [The numbers “3” and “4” disappear. Number “1” is labeled “needs” and “2” is labeled “wants.”] They include things that are necessary to survive and make a living, like income, food, housing, utilities, and transportation. [The words for the items listed appear in a list under the number “1.”]

[A hand with a pen tucked in its index finger, typing on a calculator.The text “paying off debt" and “saving money” appear.]

Paying off debt and saving money are also considered essential needs, because they get you beyond just surviving; they are qualities of responsible money managers.

[The number “1” labeled “needs” is on screen with the words listed: income, food, housing, utilities, and transportation. The number “2” appears next to it and is labeled “wants.”

Wants are secondary items and services that are nice-to-have but not necessary to survive. Some things, like food and clothes, can fall into both categories—you need them but you might want more than the bare minimum. [The words “food” and “clothes” are listed under the number “2.” The word “food” is bolded on the “needs” list, and the word “clothes” is added to the “needs” list under the number “1.”]

[Four icons representing sports, events, TV, and clothes appear on the left side with the word “wants” and four empty boxes on the right.]

Here's a trick: put your wants in order of what matters most to you. [The four icons move into the four boxes.] After you've taken care of all the necessities, which includes putting money into savings and paying off debt, go back and look at that list. [“Needs” appears on the right side with icons representing savings and paid bills.] You can use some leftover money towards an item on your wants list and feel good about it. [A check mark appears next to the first item under “wants.”]

[A woman with a hand on her chin pondering. A smart phone with the word “shopping” and two shopping bags on the screen.]

But also think before you spend. Ask yourself: How will this item add value to your life? Do I need this now? Or is it better to save my money for something down the road? Wait an hour or a day to see if you still feel the need for it.

[A smiling couple is sitting on the couch looking at the calculator the man is typing on with one hand. His other hand is holding a couple sheets of paper.]

If you prioritize your spending, you’ll have a responsible game plan for how to manage your money each month. First, take care of your needs, then work on building savings and a good credit score to get ahead, and finally, treat yourself a bit with some of those wants. [The text “needs,” “savings,” “good credit score,” and “a bit of wants” appear as mentioned by the narrator.] This way, you'll not just survive but thrive with your money!