How to spend money more conscious

In our Mind Your Money series we explore how to ensure you are spending money in a responsible way. Your spending is the visible portion of an iceberg. Your spending is a reflection of your money values. These are deeper and more important.

While we are all familiar with the values of honesty, integrity and reliability, have you ever considered what your money values might be?

What you consider important is what money values are. Are you a believer in safety, security and freedom?

Your personal money values may also be important to you. Your partner may value adventure, but you might value security. Money values of one person are not necessarily more important than those of another. Multiple money values can be active at the same time. You may place a high value on both adventure and security. The value of money can change with the passage of time and changing circumstances.

Think back to what was important to your 21-year-old self. These things are still important to you as they are now that your age. When you have a family, it’s normal for money values to change. Your money values can have a significant impact on your spending habits. You’re more likely than others to save money for the unexpected. You might save money for travel if you value adventure. You might be a believer in community development and charity, and you may choose to give your money to organizations that are close to you.

IDENTIFY YOUR VALUES

Let’s have a little fun: Imagine you won the lottery. What would you do? What would you do with the money? Would you care for your family and friends? Some people might return to school, which could lead to higher learning. Others may open their own businesses. The money value could be independence, creativity or some other thing.

You could save money to ensure your safety and security. Others might start their own charity. The money value could be charity or giving back. After deciding what you would do with the money you have, you can ask yourself if you are living up to your values. Next, list your top three money values.

EXPLORE THE IMPORTANCE OF YOUR VALUES AND THEIR HISTORY

Ask yourself why each value is important to you. Next, ask yourself: How is this money value important to you? Was there a time as a child that shaped you? A child may witness their parent become bankrupt due to a failed venture. This child might grow up to be a person who values security and safety.

A person who grows up with too much stuff and finds it overwhelming is another example. They might value simplicity and minimalism. It’s all about curiosity, so don’t be afraid to make judgments about your past.

IDENTIFY HOW AND WHEN THE VALUE IS MET

You might ask yourself: How can I tell when my (insert value here) is being met? You may be able to meet your charity value by volunteering or donating money. You might be able to meet your retirement value by working with your financial advisor and sticking to your plan. Perhaps you enjoy seeing your savings grow and planning your next scuba diving trip. As a bonus, consider how it feels to be aligned with your money values–peaceful, happy, and comfort.

IDENTIFY WHEN AND WHERE YOU ARE RESISTING ON YOUR VALUES

This can sometimes lead to impulsive spending. One example is that freedom could mean you have enough money to travel anywhere you like at any time. You might also be spending more money on convenience items, such as ordering takeout multiple days a week. You can be more conscious of your spending habits and ask yourself if the purchase that you are about make is in line with your money value. It should! Don’t buy if it doesn’t.

CREATE A ANCHOR TO REMIND YOU WHAT IS IMPORTANT

This could be something tangible (a picture or jewellery, crystals, etc.). or nonphysical (a song, a favourite quote). You could even stick a sticker to your credit card to remind you of the things that you value. You can then ask yourself whether this purchase is in line with your values every time you pull out the credit card. It serves as a reminder to keep your eyes on the prize and not get distracted by other things.