What would happen if you spent money on the things that mattered to you most? It’s so easy to feel like you’re spending money because you have to, or you’re saving money because you’ve been told you should.
But if you start think about your spending in terms of your values, you put a few things into perspective. Of course, the first step here is to know what your values are, especially as they relate to money. In this episode of Everyday Money with Hannah Moore, I walk you through a couple exercises to figure out where your money values lie.
What’s important to you?
If you want to find your money values, ask yourself:
💠 What are some values that are central to who you are?
💠 What is important to you?
💠 How do your values align with others in your life?
Try not to only think about your values in financial terms. Hard, I know, but it is possible. Start by trying to think about the times when you experienced true joy and fullness in your life. What was the cause or reason for that? Maybe family is one of them, or travel. It can be anything.
If you’re in a relationship, talk to your significant other about this, too. You can even list them separately and then come together afterward to compare and form a “combined” value list.
The cost of your values
Here at Everyday Money, we use a Value Exercise frequently. Essentially, it involves seeing how your values impact your finances and align with how you spend your money. Here’s how it goes:
- On a piece of paper, list out your values on the top left-hand side.
- Across the top of the paper, list out price points in three different categories of dollar amounts that align with your finances (think: low-cost, somewhat expensive, expensive)
- Categorize which values live at which price points. If you share finances with someone, do this step together.
For example, “travel” might be a value you have, but it falls under the “expensive” category. But you’re not just traveling to post on Instagram — you’re traveling because it’s important to YOU. While you may need to save more for these trips, it’s more fulfilling because it’s important to you.
I also like to refer back to this grid when you have new expenses, like a car payment or a large purchase you want to make. Ask yourself: What are my values? How does it align with my money? Then be intentional about doing the things that align with your values AND your budget.
Thanks for tuning in!
Thank you so much for checking out this episode of The Everyday Money Show with Hannah Moore. I look forward to sharing even more tips on how to balance your financial goals with your life values & goals!
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Resources mentioned in this episode:
- Access all our free resources, including the Budget Planner, Values Exercise, Balance Sheet, and more, when you sign up for the Free Resources List with your email address!
- Continue working on your values and alignment goals with the Everyday Money Workbook, this 116-page workbook includes four full sections on communication, values, and assessing your goals.