Spending Mindfully on What Really Matters to You
If you were to look back on your spending over the course of the past few months, what would come up for you? Would you see a reflection of your true priorities, or would there be expenses that feel out of alignment with what truly matters to you? Do your expenditures bring you joy (too much Marie Kondo here?) and satisfaction, or do they leave you feeling regretful and stressed?
If reviewing your spending conjures more negative feelings than positive, perhaps it’s time to take a bigger picture look at your budget using the concept of values-based budgeting. Values-based budgeting simply means matching your spending and saving to your values. The goal is to feel really good and satisfied with what you’re doing with your money. It means less focus on “cutting” and more focus on deciding what you want to spend your money on.
How to Determine Your Core Values
Values are the principles and standards that you hold most important in your life. They guide your behavior, decisions, and how you allocate your time and resources. Understanding your core values can help you make financial decisions that align with what truly matters to you.
I really like referring to Brene Brown’s list of values from her book Dare to Lead. The list ranges from “accountability,” to “adventure,” to “giving back”, to “security”. Which of these resonate with you the most? Can you narrow it down to ten core values?
This exercise reminds me of an assignment my 11-year-old did in fifth grade this year. He recently brought a laminated picture of himself home from school with “I am..” at the top. He described himself as “adventurous”, “curious”, and “confident”. I think he really nailed some of his core values!
Moving Over to Your Budget
Now that you have a list of your core values, let’s look at your budget. It doesn’t matter if you are using YNAB, another budgeting app, or a simple spreadsheet. Have a look at your categories and try to assign a value from Brene’s list to each of the categories. How many align with your list of top ten core values? Would you like to make any adjustments to better align with your core values? Are there areas you’d like to spend more on, to better align with your values?
If you budget with a partner, this is a great exercise to do together to ensure that your shared budget reflects each of your values (as well as your shared values).
Practicing Values-Based Budgeting
Values-based budgeting doesn’t mean throwing all of your money at “fun” without saving for your future, for example. You only have so much money to work with, and you have bills to pay (sorry to break it to you..). But once in a while, it’s good to give your categories a values-check.
Consider these questions:
Are there areas where you’re spending a lot but not gaining much satisfaction?
Are there neglected areas that would enhance your life if you invested more in them?
Can you redirect funds from less important areas to those that align more with your values?
I did this with my own budget at the beginning of the year. 2024 has been a year of focusing on my health, and that value rocketed up to the top of my core values list and I have budgeted a lot more on health-related things this year compared to last year. For example, I hired a life coach (more on that in the future), bought a new gym membership, and subscribed to an app that designs workout programs for me. Let me tell you: it feels really good, both inside and out!
Conclusion
Values-based budgeting is about aligning your spending with what truly matters to you. It’s a process of reflection, adjustment, and ongoing evaluation to ensure that your financial decisions support your most important values. By doing so, you’ll not only manage your money better but also find greater satisfaction and joy in how you spend and save.
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