WHAT IS THE FIRST BILL YOU PAY EACH MONTH?

Money cannot buy happiness, but it can make life easier. Because living life always stressed and guilty about money isn't much of a life at all. The good news is you've held the secret to eliminating stress and worry all along—and it isn't more money. Sure, more money would be nice, but until you align your spending with your true priorities, you will feel anxious and unsatisfied. So, double down on what's most important, spend with intention, and enjoy the life you want to live!

We talk about priorities a lot because your priorities are the foundation of your budget and your life, and pretty much everything. Or at least they should be. What is important to you should be determining and directing when, how, and on what you spend money. But it isn't always entirely cut and dry.

BILLS

we all have them and we all should be paying them, but I’m not naïve enough to believe that everyone is. I believe that how people manage, or mismanage, their money tells you a lot about who they are as people.

Do you have everything automated so it comes out of your bank account each month, or are you struggling to make sure your bills are paid each month?

Of course, those are extremes and there are many shades of gray in between. I was reading an article on Yahoo Finance recently and it was discussing what bill people pay first and what it may reveal about our priorities. So, what bill do most people pay first each month?

Drumroll please…the winner is the car payment.

When comparing credit card payments, mortgage payments and car payments, the latter of the three comes out as the clear winner.

IS IT “BAD” TO HAVE YOUR CAR PAYMENT BE THE FIRST BILL YOU PAY EACH MONTH?

I’m not going to discuss the wisdom behind having a car payment or even buying a new car vs. a used car as that has been done to death and the answer really depends on the specific situation of the individual making the decision.

Personally speaking, we’ve had car payments in the past and are going to do everything we can to avoid having one again in the future. I believe that there can be instances where it might make sense to have a car payment, like if you can get a great rate and make more money elsewhere, but personally I don’t believe we want a car payment again as it’s just a drag on the budget.

What is behind the urge to make car payments first, before other obligations, each month? According to the article it shows the “freedom” that we view having a car gives us. Many people love their cars and view it as a necessity and for many it is. After all, how can you get to work if you don’t have a car? Public transportation is great, but many cities do not offer it at an adequate level and biking to work may also not be a viable option for everyone, thus leaving a car as the mode many need to get to work. With all that in mind, it can be easy on one level to see why so many people make their car payment be the first bill they cover each month.

On one level, I think what bill you pay first, especially between mortgage and car can be a bit of a chicken and the egg situation, but on many other levels there is some skewed thinking.

WHAT SHOULD YOUR PRIORITY BE?

The problem I see with making a car payment the first bill you pay is that it’s not a necessity on many levels. Yes, you may need a car to get to work and I cede that point, but if given the choice between my car and my home I’ll let you guess as to what I’m going to choose every time – my mortgage payment as I view it as a necessity for my growing family.

Once the mortgage, or rent, is covered along with other necessities then I believe a car payment should be dealt with. Of course, my priorities may be different than what yours may be, but unless you plan on living in your car then I’d think this would fit many. 🙂