How to Find What You Value to Make Smarter Spending Decisions

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When you figure out what you value you can stop spending money on stuff you don’t need and free yourself from guilt when you spend on the things you value. 

Today I’m showing you how to find what you value so you can start to make better spending decisions.

You may have heard of the phrase, “start with why.” It was coined by Simon Sinek. It’s aimed at business owners and leaders and the basic concept is:  

“People don’t buy what you do, they buy why you do it.”

As a result, we now we hear a lot about determining your “why” before you pursue financial goals. Thinking about your why should help you control your spending.

Unfortunately, your “why” isn’t going to keep you from making small everyday purchases, especially if they’re aligned with your values, good or bad. 

Why Your Values Impact Your Spending

We all have core values that motivate our actions, including our spending.

Every value has a healthy side and an unhealthy side and once you discover your core values you can look at your unhealthy spending habits and identify healthy habits that align with the same value to replace them with.

Replacing an unhealthy habit with a healthier one is the secret behind breaking bad habits. But it’s not as easy as it sounds. The healthy habit has to serve the same value the unhealthy one did.

We don’t talk as much about how our values affect our financial goals because a lot of people don’t know what they value.

When someone asks you your “why” you can probably easily say family, friends, financial independence, etc

But our spending motivators are so much more than our family and friends. Some people value efficiency while others value thoroughness. Some value restraint while others value being outspoken. 

It’s these values, not matter how nuanced, that drive how you spend. 

When you know them and keep them in the back of your mind, they will be the drivers behind your better spending habits and help you stick to your budget.

How to Find What You Value

There are hundreds of “values.” You can go straight to a list or take a test like the Enneagram to choose your values. Those are great but before you go there, Reflect on these four exercises to get a picture of your values then use lists and tests to confirm.

Exercise 1: Your Spending

Go through bank transactions for the past three months and look at what your spending is telling you about what you value.

Look for stores, restaurants, and establishments you see frequently on your bank statement. Also, look for notably absent transactions. If there are causes or values you care about but don’t see reflected in your statement now is a good time to be intentional about putting those in your budget.

Exercise 2: Meaningful Moments

Write down 2-3 moments from your life that really stand out, all the way back to childhood. Not your wedding or birth of your child, moments that to others might seem insignificant but hold tremendous value to you.

Dissect those moments to find the values you were honoring.

For me, it was a time in 4th grade. I finished a writing assignment and my teacher was so impressed she had me go around to all the other teachers in the pod and show them the assignment.

That teacher honored my values of knowledge and achievement, and was a big part of why I took the leap to full-time writing.

Exercise 3: Moments of Betrayal

Moments of betrayal aren’t against you but against your values.

Write down 2 or 3 memorable times of frustration or anger, that maybe others thought was unreasonable. Dissect those moments to see if there was a betrayal of a value

I don’t know everything but I know a lot about a few things. I feel insecure when someone insults my intelligence on a matter I feel like I know a lot about because striving for knowledge is one of my core values.

Exercise 4: Life-giving Activities

What are the activities that you do that give you life, a sense of purpose, or bring you the most joy? What value do they serve?

For me, working and exercise give me life. My work allows me to learn and help people. Exercise allows me to stay healthy which preserves my quality of life, another core value for me.

You may not be able to complete this process in a day, it may take several weeks.

You may find it hard to determine values from just these 3 exercises, you may have to dissect your budget, bank transactions, and schedule to get a clearer picture of your values.

On the other hand, you may find you have a lot of values. And that some conflict with others. Picking to three to 10 values and prioritizing them is necessary when deciding which purchases to make based on you values.

It’s also important to point out that your values can change, evolve, improve, or degrade so this is something you’ll do again and again.

How my Values Impact my Spending

I don’t mention this in the video but one my biggest core values is frugality (shocker!) Frugality is more than just saving money, it’s being a good steward of resources.

That translates to consuming less, buying eco-friendly products, shopping secondhand, and anything else that stewards resources well.