Lately I was reminded of an important principle I had learned and almost again forgotten. Financial planning is a means to an end and should serve the following purpose in priority order:
1) People
2) Money
3) Stuff
First and foremost, we should use our money to help people, which by the way also includes ourselves. Satisfy basic needs and help family and friends if in need. (BTW, never give a *loan* to a family member or close friend. Give the money away instead and write it off (I’m stopping short of calling it a gift) – ask to be paid back in one form or another later when times are better. It’ll prevent bad feelings on both sides. If you can’t afford that form of giving, I don’t recommend giving any money at all – it’s a recipe for emotional turmoil and awkward situations and I’m not only talking about the receiving person…).
After having taken care of that, money should secondly be invested. Either in financial investments (stocks, bonds, CD, direct investments), or also in education. These investments should include a healthy savings rate (>25% of your income).
Only then should you allow yourself to spend any remaining money on things you want, or on things that commercials tell us we need and want.

People, Money, Things. Simple, but easy to forget.