Important boxes

Gail Vaz Oxlade is essentially the queen/prime minister/non-hierarchical amazing person of Canadian personal finance.

If you haven’t already heard of her and watched Princess, Till Debt do Us Part, Money Moron, read her blog or any of her books, I strongly encourage you to do so now.

Last week she wrote a post about determining what is important to you by examining your budget. Check it out here!

To do so she suggests you divide up up your spending based on categories

  • Important now
  • Important later
  • Not-important now
  • Not-important later.

I personally consider these categories to more accurately be described by:

  • Needs
  • Future Needs
  • Wants
  • Didn’t actually need to spend it (respectively).

These are my important boxes for October spending:

Important/Now  =1498 (49.8%) Important/Later  =707 (23.5%)
850  (rent) 657  (savings)
144  (food) 50  (RRSP)
100  (emergency fund)    
404  (debt)    
Not important /Now  =296 (9.8%) Not important/ Later  =338 (11.2%)
 63  internet  80  lamps, bike pump
179  transportation  75  eating out
39  phone 183  entertainment
15  bank fees    

I found this to be a very effective tool, both visually and logically. Sometimes it’s hard to classify things as needs and wants, but when you think about the importance and urgency of things it can make thinking about your finances a bit more intuitive.

Makes me think that October I did actually have my priorities in line- with over 70% of my income going to my current and future needs.

What is your most important box?

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s