Understanding Your Values Can Save You Money
Have you ever heard the phrase “align your finances with your values!” and wondered what that even meant? It sounds so vague that while it is intended to be appealing, it just lacks any real gusto. Kind of like saying “We have great service!”……..yeah, you better!
I believe there is incredible value in aligning your finances with your values, but I fear it might not translate to something that is easily understood.
The key is understanding your financial behavior (what you do with your money). Part of our process is digging into what your Top 5 values are. Our values represent our “ideal selves.” They are the motivators. Our “Why.” Our behaviors, on the other hand, represent our “real selves.” We are what we repeatedly do.
Financial success is when our “ideal self” matches our “real self.” We get there by making decisions with our money that actually live in accordance with our predetermined values.
I was working with a couple who had been struggling with their spending but didn’t know how to get out of the negative cycle. We went through a Values exercise to determine their top values, which included:
- Health
- Happiness
- Community
After comparing this list with their spending, the biggest thing that stood out to them was how much they were spending on eating out. In one sense, it contributed to happiness, and at times, their sense of community. But they also noticed that they felt very unhealthy, and this was likely one of the largest contributors.
“Is there a better way to achieve happiness and community than eating out?” I asked.
After thinking for a moment, they thought they could invite friends over to their backyard and enjoy homemade snacks (which they loved to make) and could include food from their garden, (which they love to work on).
Now they can spend less on food and drinks, feel better about their diet, and still enjoy the company of their friends. Not to mention free up their cash flow for other long-term goals.
This is what “success” looks like.
