In a time of resolutions, who doesn’t reflect on where, exactly, their money goes?
Understanding your personal money values is the foundation for making meaningful financial decisions.
Values-based budgeting is an approach that puts your personal values at the center of your financial planning.
Instead of starting with traditional budget categories, you begin by identifying what’s most important to you.
Then, you allocate your money in ways that support these priorities.
Asking “Does this align with my values?”
before each purchase can curb impulse spending tendencies.
Percentage budgets don’t encourage the same reflectionreflection that leads to dollars saved.
I define “money values” as the core principles and priorities that guide your financial decisions.
Start by listing all the areas where money intersects with your life.
Which spending decisions do you regret?
What financial choices make you feel proud or aligned with your principles?
Consider your patterns.Where do you consistently choose to spend extra?
What do you tend to prioritize when money is tight?
Which expenses do you never question?
Explore your motivations.Why do certain financial choices feel important to you?
What experiences from your past influence your money decisions?
How do your spending habits reflect your hopes for the future?
From your answers, look for themes and make a run at name your money values.
Look for disconnects between what you say matters and where your money actually goes.
Set value-aligned goals.Create financial goals that directly support your core values.
Make intentional trade-offs.When faced with financial decisions, use your values as a framework.
Regular check-ins.Schedule periodic check-ins to ensure your spending continues to reflect your values.
As your life evolves, your values may shift, and your financial choices should adjust accordingly.
The bottom line
Identifying your money values is an ongoing process of self-discovery and refinement.
And hey: ‘tis the season, right?
Take time to explore and articulate your money values, then let them guide your budget.
