What Should I Work on First? A Simple Way to Prioritize Your Finances
Emergency fund. Credit card debt. Insurance. Investments. Retirement. Savings goals.
And apparently, you're supposed to enjoy your money and live your life too.
Ang dami. 😅
Maybe you finally have a little extra money this month and you're trying to figure out where it should go. Or maybe you've been reading about personal finance long enough that you already know most of the things you're supposed to be doing.
The problem isn't necessarily knowing what to do anymore.
It's figuring out what to work on first.
Because unless unlimited ang budget natin (sana all), you probably can't give the same amount of money, time, and attention to every financial goal at once.
So instead of trying to fix everything, here's a simpler way to decide what deserves your attention right now.
First, a quick note: There isn't one perfect order.
You'll find plenty of financial checklists that tell you to budget first, build an emergency fund next, pay off debt, get insurance, then invest.
Those can be helpful as general guides. But real life isn't always that neat.
Someone with an unstable freelance income may need to prioritize cash flow differently from someone with a steady salary.
A parent supporting two children may have more urgent protection needs than someone with no dependents.
Someone carrying expensive credit card debt may need to approach investing differently from someone who pays their balance in full every month.
Your priorities depend on what's happening in your life right now.
Instead of asking, "What's the correct order?" try asking yourself these three questions.
1. What needs to be stabilized right now?
Start with whatever is making everyday money difficult.
Maybe your income isn't consistently covering your essential expenses. Maybe you're falling behind on bills. Maybe your credit card balance keeps growing. Or maybe money comes in and goes out, pero hindi mo talaga alam saan napunta.
Before worrying about whether you're investing enough for retirement, look at what's happening with the money you need to manage today.
Ask yourself:
Is there something in my finances that needs fixing now before I can comfortably work on anything else?
That might mean creating a basic budget, getting caught up on essential bills, understanding your cash flow, dealing with expensive debt, or building a small buffer so one delayed client payment doesn't throw your entire month into chaos.
This doesn't mean you need to have everything perfectly organized before moving forward.
You just want enough stability that the rest of your financial plan has something solid to stand on.
2. What could seriously set me back if I'm not prepared?
Once your everyday finances are reasonably stable, look at the things that could undo the progress you've already made.
This is where your financial safety net comes in.
For some people, the priority might be building an emergency fund. For others, it could be making sure they have appropriate healthcare or HMO coverage, reviewing their critical illness protection, or protecting their income because other people depend on it.
Known expenses count too.
If you know you have an annual insurance premium, tuition payment, taxes, property payment, or another large expense coming several months from now, start preparing before it arrives.
Hindi siya emergency if you already know it's coming.
But if you don't prepare for it... well, it can certainly feel like one when the bill arrives. Haha.
Ask yourself:
What could seriously disrupt my finances if I'm not prepared for it?
The answer gives you a clue about which part of your safety net needs more attention.
And one important note about insurance: protection doesn't automatically mean buying a policy.
Your cash flow and overall financial situation still matter.
I've had conversations with people who were ready to get insurance, but after looking at their numbers, we decided not to proceed yet because building savings and an emergency fund needed to come first.
Insurance is a long-term commitment. It shouldn't become another bill that makes an already-tight monthly budget harder to manage.
Sometimes, protecting your finances means getting coverage.
Sometimes, it means strengthening the foundation first.
3. What do I want my money to make possible next?
Once things are reasonably stable and you've started building your safety net, you have more room to think beyond immediate financial problems.
Now you can ask:
What do I want my money to make possible next?
Maybe, you want to invest more consistently for retirement. Maybe, you're saving for a home. Or maybe, you want enough money to take a career break, start a business, study again, travel, help your parents, or simply have more choices later.
This part is personal.
You don't need to pursue a financial goal simply because everybody on your feed seems to be doing it.
Your money should support the life you're actually trying to build.
And yes, that life can include things you enjoy today too. Financial planning doesn't require postponing happiness until age 60.
But what if I have two priorities at the same time?
You probably will.
Realistically, most of us are managing several financial goals at once.
Prioritizing doesn't mean you're only allowed to work on one thing.
You might be prioritizing your emergency fund while still contributing a smaller amount toward retirement. You might be paying down debt while setting aside a little money for an upcoming trip. You might be strengthening your insurance coverage while continuing to invest.
The point is to decide what gets more of your attention and resources right now.
If you're stuck between two priorities, try this question:
Which one could create a bigger problem if I ignored it for the next six months?
Usually, that makes the decision a little clearer.
Stabilize what needs attention now.
Protect yourself from what could set you back.
Build toward what matters next.
You don't need to fix your entire financial life this month.
And your priorities aren't permanent. As your income, responsibilities, relationships, goals, and life change, the answer to "What should I work on first?" can change too.
So if your financial to-do list currently feels approximately 47 items long, don't start by trying to finish the list.
Figure out what matters now. Then work on that.
Not sure what your priority is yet?
Sometimes, the hardest part is figuring out where you actually stand.
The Adulting Checklist: Finance Edition is a simple financial check-in I created to help you look at what you've already handled, what might need attention, and what you're still unsure about.
You don't have to do everything on the checklist immediately.
The goal is much simpler: figure out one good next step.
Hi. I'm Lovette Jam...
I'm the woman behind Tita Raketera.
I am on a mission to help young professionals improve how they MAKE money,SAVE money, and GROWmoney.
If you're a Filipino online freelancer (or planning on being one!) and struggling to:
✔️ save for emergencies and retirement,
✔️ invest your money, or
✔️ pay off debt
You're in the right place!
I'll help you discover practical strategies and techniques that allow you to save for your financial goals without sacrificing the things that bring you joy. Let this Tita guide you towards a fulfilling life while securing your financial future.
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