Rank expenses by importance from the most to the least, then pay the most important items with the first dollar received each month.

This seems too obvious to state, but the quickest path to financial trouble is to pay expenses of lower importance before paying the essentials.

Shelter, food and tithe (if given with joy) would be the first expenses for many households. Even if lower priority expenses are paid first, these higher priority items will be looming and require payment.

Shelter may include mortgage, rent, Homeowners’ dues or home insurance, as applicable, but if the expense is required, then pay it first.

Ranking expenses in priority is a mere acceptance of the finite nature of monthly income. Steven Covey popularized the term First Things First as a time management strategy, because time is another finite resource. Covey organizes tasks in a matrix of their urgency and importance.

Likewise, expenses can be urgent – A/C needs repair in the middle of the summer, or a vehicle requires a new tire and expenses are none-urgent items like monthly savings. All three items are important and must be done. The failure to recognize savings as important (but not urgent) will create more urgent expenses in the future. Savings minimizes the occurrence of urgent expenses to pull from monthly income.