Making decisions can be hard work.
Sometimes I get tired of trying to choose between all the options of life. Truth be told, some decisions that I thought were important turned out to have little or no impact on my life. Other decisions that I made are still impacting me (either positively or negatively).
In this post, I want to point out some of those decisions that will impact your finances for a long time. I tried to list them in order, but it was too difficult.
Instead, I’ll share the three most important financial decisions you’ll ever make, and then the best of the rest.
The 3 Most Important Financial Decisions You’ll Make
1. How much should I give?
As Christians, we believe that we are called to store up treasures somewhere beyond this earth. All the other money questions may impact the days of your life on earth, but how you treat this question will have a much longer impact.
Read more:
- 21 Bible Verses About Giving
- Tithing in the new testament
- Why we began giving our age as a percentage
- 10 inspiring quotes about giving
2. Who should I marry?
I’m not suggesting you shouldn’t marry for love, but I do believe that when you choose to marry someone, that will be one of your biggest financial decisions. Some people suggest that buying a house is your biggest financial decision, but the truth is that your spouse will have a significant say in how much you spend on a house. Your spouse will also have a certain way he or she spends money.
More:
- Getting to know each other financially before marriage
- 5 tips to stop fighting about money with your spouse [VIDEO]
3. What is my/our debt stance?
How you feel about debt significantly impacts your finances. Some, like myself, are allergic to debt. I hate paying interest to people.
Others think that debt is a perfectly acceptable way to accumulate stuff. These are people who rack up thousands of dollars in credit card debt in just a few short years and are then forced to work three times as long to pay off credit card debt.
More:
- D9 reasons paying off debt was one of the best decisions we made
- What the Bible says about Debt
- How to stay motivated while paying off debt
Best of the Rest | Other Important Financial Decisions
4. What should I do when I grow up?
Most people only have one job at a time, but some do keep part-time jobs. Thus, much of your financial future will be determined by the job you take. At the same time, we should also point out that your job can also have a huge emotional impact. For many, satisfaction in life is closely associated with what they do for a job. When considering what you will do when you grow up, remember that life is more important than money.
5. How much should I spend on college? How will I pay for college?
Most people traipse off to college and spend the next 10 years playing financial catch-up. Despite what people say, I think it is possible to graduate debt free from college. Either way, it is entirely possible to minimize your college expenses so you don’t have such a high debt load.
6. How much should I spend on a car? How will I pay for my car?
Our family made the decision to pay cash for cars. Looking back, now I realize that was a very good choice that has positively impacted our finances.
More:
7. How much should I save for retirement?
When you are planning for retirement, you want to be sure that you have enough. Enough can be a hard thing to determine. However, if you are not saving anything for retirement, I think you’ll find a very different experience during your own retirement.
8. How much house should I buy?
Unfortunately, some people end up purchasing a house they cannot afford. That house eats up too much of their income, and everything else is pushed aside to make room for house payments. A home should be a blessing, but if the mortgage is too high you will never be able to enjoy your home.
What other questions did I miss?
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We don’t seem to ever think about how we will teach our children (either yours or those in your extended family) about finances. Like in many other cases, we teach them by the example we set, but it also takes a concious effort to help them save and be responsible with money. Taken lightly will translate into more money going down the drain.
Another important question is “should we have kids?”. That is a major financial decision. i don’t regret having my kids but know I would be financially better off if I had the money spent on them in the bank.
No amount of money is worth the joy and love I’ve received as a parent and grandparent.
Another question that has a lasting impression on my finances is “How much should I invest each month?”
One question that spans many of the ones you mentioned is “How much is enough?, what is a want and what is a need?”
I think the marriage one will almost guied the rest of the questions.
“When’s the right time to have kids?” I know there’s no “perfect time” but there’s some times that are better than others (when the income is right and the savings is enough)
I think the question about children is very important. Also, will the mother stay home with the children, and are you prepared to live off of one income. Another consideration is whether to rent forever and just invest the money you save from not buying a home.