Do you ever find yourself spending money on things you think make you happy, but realize they don’t? Maybe you’re excited when making the purchase, but a few hours later you’ve already forgotten about it? This likely means there’s a disconnect between your spending and your values. When your spending doesn’t reflect what truly matters to you, you’re left feeling unfulfilled. That’s when you should seek to align your spending to your values.
Values-based spending leads to true fulfillment because you’re spending money on things that truly matter. There’s a certain satisfaction you get when spending your money on things that make you happy and mean something to you. I know this firsthand. Before I understood my values, I thought material things made me happy. I would constantly buy clothes, shoes, and accessories, only to discard them after the first use.
I would purchase these things in preparation for a night out at the club, or on a first date. Then, I always felt like I needed something new for the next night out. This cycle led me down a path of overspending and leveraging credit cards. I wound up with tens of thousands of dollars’ worth of debt and absolutely nothing to show for it but a closet full of stuff.
Since then, I’ve taken the time to identify my values and the things that matter most to me. Now, I spend my money on those things and don’t feel a single ounce of deprivation when avoiding things that don’t matter. I want to help you do the same! I’m sharing 5 ways to align your spending to your values so you can feel fulfilled with your spending decisions.
5 Ways to Align Your Spending to Your Values
#1 Define Your Core Values
Start by reflecting on what’s most important to you. Think about the things that truly bring you joy and fulfillment—family, health, personal growth, travel, or sustainability. Identifying your core values gives you a foundation for decision-making. Use tools like journaling or a values exercise to pinpoint your priorities.
For example, if wellness is one of your core values, prioritize spending on fitness memberships, healthy food, or wellness retreats instead of unnecessary luxuries. Knowing what matters most makes it easier to say no to things that don’t align.
#2 Conduct a Spending Audit
A spending audit helps you understand where your money is going and brings to light areas where your spending doesn’t align with your values. Start by gathering your bank and credit card statements from the past few months. Categorize your purchases and analyze patterns to see if they align with what you truly care about.
Take note of recurring expenses or impulse purchases that don’t bring long-term satisfaction. Highlight areas where adjustments can be made to better reflect your priorities. For example, if you’ve determined that sustainability is a core value you might notice frequent purchases from fast fashion retailers. Consider redirecting that spending toward secondhand stores or eco-friendly brands.
#3 Prioritize Quality Over Quantity
The notion of quality over quantity doesn’t just apply to items, but anything – time, experiences, and services. Instead of buying more, focus on investing in fewer, higher-quality items or experiences that align with your values. This not only ensures you’re spending intentionally but also reduces waste and increases long-term happiness with your purchases.
If you live in a cold city or plan to visit one, spend on a durable winter coat instead of buying multiple cheap ones that don’t last. Or, if you value connection, spend money on meaningful experiences, like tickets to a concert with friends, instead of accumulating material possessions. This shift can help you bring more joy and less clutter.
#4 Create a Value-Based Budget
A value-based budget ensures your financial plan reflects what’s most important to you. Allocate money to categories that support your values, such as a travel fund if you value exploration or a donations fund if you value giving back. Each of these categories should be included in your budget so you can allocate your income to them accordingly.
#5 Make Intentional Choices
Learn to direct your dollars with purpose by being intentional with your money decisions. The reality is, you don’t need a six-figure salary to live comfortably, and you could make a million dollars a year and not be stable. It’s all about what you do with the money you do have and make. Directing your dollars with purpose allows you to reach all those financial goals you have.
The key here is to be mindful and aware. Be present when you’re spending money, paying a bill, or making a financial decision. Think through every transaction so you know you’d be happy with the result or outcome. Learn to avoid purchases or spending decisions that don’t align with your values. Intentionality will help you feel confident in your choices with money.
Related: CGS Podcast #90 – How to Be Happy with Frugal Living with Vee Frugal Fox
The benefits of aligning your spending to your values are unmatched. I’m talking joy, peace of mind, financial clarity, and the ability to say no to things that truly don’t matter. You’ll never feel more in control of your money than when you practice values-based spending.
I want you to take one actionable step today towards values-based spending! If you don’t know your values just yet, make that your first order of business. After that, the options just expand for you! Which tip from above will you follow first? What’s one way you align our spending to your values currently? Drop a comment to share!
-Raya
The CGS Team
