Suppose you have the following financial goals, and not enough money to do them all. Arrange them in the order you should tackle them.
A. Paying down credit card debt.
B. Contributing to your savings account as specified by your budget.
C. Paying your electric bill.
D. Buying a new tv.
C B A D
A C B D*
C A B D
Looks ok, but I think CABD is better.
If you're strapped, all the bank can do is cancel your credit card. But the power company can cut off your service if you're late paying them.
I agree with Anonymous
To arrange the financial goals in the correct order, you need to prioritize them based on their importance and urgency. Here's how you can go about it:
1. Paying your electric bill (C): This should be a priority because it is a necessary expense that ensures you have one of your essential utilities functioning, and it could have consequences if left unpaid (such as losing power).
2. Paying down credit card debt (A): This goal should come next because carrying credit card debt usually incurs high-interest charges, which can be detrimental to your financial health in the long run. It's essential to focus on getting rid of this debt as soon as possible to avoid additional expenses.
3. Contributing to your savings account as specified by your budget (B): Saving for the future is important, but it comes after paying off high-interest debt. Once you have cleared your credit card debt, you have more disposable income to allocate toward your savings account and work towards your long-term financial goals.
4. Buying a new TV (D): This goal should be the last on the list because it is a discretionary purchase that can be postponed. Prioritizing essential expenses and debt repayment is generally more important than making non-essential purchases.
Therefore, the correct order to tackle these financial goals is: C (Paying your electric bill), A (Paying down credit card debt), B (Contributing to your savings account as specified by your budget), and D (Buying a new TV).