Setting Priorities

By Michael at 8:05 AM on January 21, 2010

Setting goals is an effective way of getting many things accomplished. However, for personal finance and similar activities, there is an even more important task at hand: setting priorities. Prioritizing is a process similar to goal setting, but there are some subtle and conspicuous differences which are important to know and master.

Setting Goals

First, let us establish what is meant by setting goals. A goal is an aim; any time you want to accomplish something, that is a goal. Goals drive actions in meaningful directions and moderate tasks associated with going about one’s day. Setting goals is a process during which one sits down and thinks about every that must or should be accomplished in order to become happier. Goals are end-oriented, rather than being concerned with the path. As such, they can often end with frustration and little progress, unless one takes the necessary extra steps to lay out a chain of actions.

Setting priorities

Priorities are different from goals once the surface has been scratched. Priorities are any and all important things come to mind. If it is important, it is a priority. A goal would be to own a house by 2020. A priority would be providing a safe and stable environment for one’s family.

Another difference is the priorities are not end-oriented. Priorities have no ending, except for death or a change of heart. When one has a priority, it is an on-going task with which one keeps up – something maintained, kept afloat throughout life.

Priorities and goals both drive actions, but do so in different ways.

How to set priorities

First, get into a relaxed state and clear your mind of the day’s influences.

Next, think about what is important to you. Do you want a safe environment? Do you want to get to self-actualization on Maslow’s hierarchy? Write it down.

Finally, considering everything, decide an order of focus. What is the most important to you, and what is the least? Consider these categories: Physical, Mental, Financial, Spiritual, Emotional. Try to have only one highest priority in each, or you may become overwhelmed with the task at hand. Also, try to focus on one category while keeping all in somewhat close balance. Focus efforts, but never let the other weights drop.