The Problem with How Most of Us Spend
We’ve been told that managing money means spending less. But cutting back isn’t freedom, especially if you’re still spending on things that don’t actually matter to you. That’s where values-based spending comes in.
Maybe you’ve followed every budgeting rule, skipped the latte, tracked every dollar, and still wondered, “Where is my money going?”
The truth is, it’s not just about how much you spend. What you spend money on is equally important.
When your money goes towards the things that matter most to you, your finances stop feeling restrictive and start feeling empowering. You stop second-guessing your purchases and start feeling proud of where your money goes. Say goodbye to buyer’s remorse!
What is Values-Based Spending (and What It’s Not)
Values-based spending is an intentional approach to money where you align your spending with your values and life goals. The things that make your life richer, more meaningful, and aligned with who you are.
❌ It’s not about being frugal for the sake of it.
❌ It’s not about guilt, sacrifice, or perfection.
✨ It’s about clarity and intention.
It’s about spending money on what brings you joy while cutting back on what doesn’t. So if the latte brings you joy, buy it! When you direct your money toward what gives you energy and purpose, you’re not wasting it – you’re using money as a tool to build the life you want.
Why Values-Based Spending Matters
When your spending doesn’t match your priorities, you feel it. It can manifest as guilt, frustration, or that quiet ‘ugh’ after a purchase that didn’t bring you joy.
But when your money aligns with your values, you feel calm, confident, and even joyful. Every dollar becomes a reflection of your choices — not social media pressure, family expectations, or comparison.
You can say you value freedom, but your spending tells the real story of what you value. Don’t just talk about your values; live them through your spending.
When you take an honest look at where your money is going, it might reveal a different story about what truly matters to you. The good news? You have the power to change that story.
How to Practice Values-Based Spending
You can’t align your spending with your values if you don’t know what they are.
Start here:
- List 5–7 things that matter most to you.
Think: freedom, security, health, family, peace, travel, connection - Circle the 3 that feel non-negotiable right now.
These define how you want to live and what you want to protect. - Look back at your recent transactions.
Highlight anything that made you think, “I’m so glad I did that.” - Then, notice the ones that didn’t. The boredom buys, guilt purchases, or “everyone else was doing it” moments.
Ask yourself:
💭 Did this expense bring me joy or relief?
💭 Did it align with my top values?
💭 If I had that money again, would I spend it the same way?
Over time, patterns emerge, and more importantly, you’ll start noticing. That awareness helps you make more intentional choices.
Redirecting Your Spending: It’s About Trade-Offs
Once you start diirecting your guilt-free spending to what matters most, take a look at your fixed and variable expenses.
If you’re paying for subscriptions or services you barely use, cancel them and redirect that money toward something that truly lights you up, like a hobby or saving for one of your goals.
Again, it’s not about restrictions, it’s about trade-offs. You’re not giving something up, you’re choosing what’s worth more to you.
The Benefits of Values-Based Spending
When you practice intentional, values-based spending, you’ll notice:
- Less guilt and more peace around money
- Clarity on what truly matters to you
- Stronger alignment between your goals and your daily life
- Easier financial decisions — no more “should I or shouldn’t I?” over every purchase
- More savings for the things that actually matter
Common Pitfalls to Avoid
Even with the best intentions, it’s easy to slip back into old habits. Watch out for:
- Overcommitting to too many values. Start with your top three.
- Letting guilt drive your spending. Obligation does not equal alignment.
- Forgetting to review regularly. Your values and circumstances can change, and so should your spending.
Boundaries and Joyful Spending
Values-based spending doesn’t mean you never spend on fun. It means you spend without guilt.
If travel lights you up, spend unapologetically on it — even if it means cutting back elsewhere.
If convenience gives you peace, order the groceries or hire the help.
If giving to family brings you joy, do it because it feels good, not because you feel obligated.
A values-based spending plan helps you set clear boundaries on what you will and won’t spend money on. These boundaries protect what matters most to you and the life you are building.
Does this mean I can spend all of my money on things that I value?
Absolutely not! Values-based spending co-exists with your spending plan. It helps you spend your discretionary income on the things you value most while still covering your necessities.
You still have to pay bills. But don’t be surprised if you find yourself reevaluating how much you spend on certain fixed expenses after you get clear on what’s most important to you.
My Values-Based Spending Aha Moment
When I finally created a values-based spending plan, I realized that all those years I told myself I couldn’t afford a vacation unless I put it on a credit card…I was wrong. I actually could afford it, I was just prioritizing other things that were not as important to me.
Once I saw where my money was really going, I made a shift. I stopped spending on things that weren’t important and redirected that money toward what I cared about: taking debt-free vactions, increasing retirement contribuitions because I don’t want to work forever, and inviesting in my daughter’s college fund.
Take the Next Step
Ready to put this into action?
Want to start spending your money on the things that truly matter to you? You’re gonna need a plan.
Download the Aligned Spending Plan, your free guide to map your values to your spending and start living in financial alignment today.
Take 10 minutes to:
- Write down your top three values.
- Review your last five purchases.
- Determine if those expenses reflect your values.
Small shifts add up — and soon, every dollar will start working for you, not against you.
