Sometimes, there’s a gap between what we believe and how we act. And that contradiction can bring up feelings of shame, powerlessness and frustration. And while changing habits can be difficult, defining your values isn’t.
In fact, one of the most powerful ways to take control of your spending is to connect it to some deeper beliefs about the world, and how you want to live in it. Values-based decision making means making the choices that reflect what matters to you. And when your spending aligns with your values, you can reinforce “good” financial choices — and have a powerful tool to see more clearly what serves you and what doesn’t.
Expert Insight from Bobbi Rebell, CFP®, CFT™
I love this framing because it flips the usual budgeting conversation on its head. Most people think of a budget as a list of what you can’t have. Values based spending does the opposite. It asks you to define what you care most about, and then reveals how to let your money fulfill that mission, instead of just flowing to what presents itself at any given time. It gives you control and power over your purse.
This can be especially effective with people who feel stuck in a cycle of guilt about money. It is hard to stay motivated by numbers on a piece of paper or on a screen. It is much easier and honestly, a lot more fun, to focus on what your money can do to support your priorities whether they are a weekend with your family, or the peace of mind that comes from seeing an emergency fund that is growing.
Bobbi Rebell, CFP®, CFT™Chief Financial Education Advisor, Accredited Debt Relief
- CFP® professional & Certified Financial Therapist™
- Author, Launching Financial Grownups & How to Be a Financial Grownup
- Former global business news anchor, Thomson Reuters
- Featured in The Wall Street Journal, The New York Times & Yahoo Finance
Bobbi Rebell is a Florida-based CFP® professional and Certified Financial Therapist™ specializing in helping people understand and compare their debt relief options.
Values-Based Spending in Real Life
Values-based spending means aligning your purchases with your core beliefs and priorities. Instead of thinking in terms of affordability, start asking if the things you want align with your aspirations. For example:
- If you’re family-focused, you might put off new work clothes until next month to save for a weekend camping trip.
- If you’re health-focused, you might cancel a few streaming subscriptions to pay for medicalcare, wellness experiences, or health related supplies.
Why Values-Based Spending Can Help Your Financial Health
When your spending reflects your values, budgeting feels less restrictive and more empowering. In fact, research shows that people feel more satisfied with purchases that align with their personality and long-term goals.
And now that you know why you’re saving or spending, you’re much more likely to stick with your financial plan over the long haul. Being intentional allows you to filter out attention-grabbing sales language and focus on what you actually need to feel content.
How to Start Spending With Your Values
- Reflect on what matters most to you. Think about what brings you joy and a sense of security. Consider how values like family, security, health, personal growth and connection inform your goals (and how you spend now).
- Review your recent spending. Look at your bank statements from the last 30 days. Highlight the purchases that made you feel good or supported your values, and flag the ones that didn’t.
- Wait 24-hours to buy non-necessities and anything you are on the fence about. For anything that isn’t a must-have, this small “micro-boundary” can help you avoid impulse spending that doesn’t serve your bigger goals.
Putting Values Into Action
Once you’ve identified your values, you can use them as supportive “guardrails” for your budget:
- If you value security: Prioritize building a small emergency fund. Seeing that balance grow can provide more peace of mind than any material item.
- If you value connection: Budget for time spent with loved ones, like coffee dates, meals and gatherings.
- If you value intellectual growth: Invest in books, a course or tools that help you learn a new skill or improve your career prospects.
When Values and Debt Collide
If you’re currently navigating high-interest debt, values-based spending can be a vital motivational tool. Instead of feeling deprived, you are making a conscious choice to prioritize your freedom and peace of mind over temporary convenience.
If debt is making it difficult to spend in a way that reflects your values, you don’t have to navigate that path alone. Accredited Debt Relief can help you explore options to simplify debt repayment and lower financial stress.