Subscribe
Share
Share
Embed
Retire With Confidence is the podcast designed to help you move beyond the fear of the complexity of finances so you can be financially free to achieve personal significance. Tune in with Josh Duncan each week to turn fear into fuel that drives you into Freedom & Significance.
Are you ever surprised at the end of the month when you look at where your money went? Maybe you thought you were spending intentionally, but then you see hundreds of dollars on Amazon, DoorDash, or subscription services you barely use. And it leaves you asking, why doesn't my spending reflect the things that actually matter to me? Well, today, we're going to talk about a powerful but often overlooked financial planning concept, aligning your spending with your values. Because here's the truth.
Josh:Personal finance isn't just about spreadsheets, budgets, or chasing investment returns. It's really about living the life you want on purpose. In this video, we'll cover what it means to spend in alignment with your values, how to discover and clarify your core values, how to identify the disconnects between your money and your priorities, practical steps to realign your spending habits, and number five, common pitfalls to avoid so you can stay consistent over time. So stick with me until the end, and I promise you'll walk away with a fresh perspective on money, not just as numbers in an account, but as a tool for building a meaningful life. So first, what does it mean to spend in alignment with your values?
Josh:Let's start with the basics. When we talk about values, we're talking about the things that matter most to you, not to your neighbors, not to social media, not to what's trending, but to you and your family. Values might include things like family and relationships, health and wellness, adventure and travel, security and peace of mind, generosity and giving back, growth and learning. Now here's the problem. Many people spending doesn't line up with those values.
Josh:For example, if you say family time is your top priority, but your money is going toward luxury gadgets, expensive car leases, or endless takeout because you're too busy working overtime, there's a disconnect. Or if you say you value generosity, but charitable giving never makes it into your budget, that's another sign. Here's an analogy I like. Imagine your money as employees in your company. If your company's mission is to promote health and family, but your employees are all working overtime to market sugary sodas, you'd quickly realize you're off track.
Josh:So in the same way, if your dollars aren't working toward what you care about most, you're going to feel unfulfilled even if you're financially successful by outside measures. So aligning spending with values simply means this, using your money as a tool to support what matters most to you. And that brings us to the next step, actually defining what those values are. Now values can sound abstract. How do you actually figure out what yours are?
Josh:Here are a few practical exercises. Number one, look back at your peak moments. Think about a time in your life when you felt deeply fulfilled or proud. What was happening? Were you surrounded by family?
Josh:Were you achieving a big personal milestone? Were you helping someone in need? Those moments are clues to your core values. Number two, imagine your eightieth birthday. This is a classic coaching exercise where you imagine people giving speeches about your life at your eightieth birthday party.
Josh:What do you want them to say? That you built wealth or that you were generous, adventurous, supportive, faithful? The answer reveals what you truly value. Number three, do a values inventory. Take a list of common values like adventure, security, service, learning, family, and circle the top 10, then narrow it down to your top three to five.
Josh:This helps you create a filter for decision making. Number four, notice your spending regrets. What purchases do you look back on and regret? Maybe that $3,000 treadmill that became a coat rack. Those regrets show you where your spending didn't align with your real values.
Josh:Here's a quick example. Let's say John and Sarah go through this exercise. They realize their top values are family, faith, and adventure. That means when they budget, they should allocate more money to things like family vacations, experiences with their church, and outdoor adventures. On the flip side, they realize they don't actually care much about luxury brands or dining out all the time.
Josh:That's where they can cut back. This is why clarifying values is so important. Without clarity, you default to what the culture around you tells you to value. Status symbols, instant gratification, or just keeping up with the Joneses. Once you know your values, though, you can start to make money choices that feel good both in the moment and years down the road.
Josh:Now let's talk about identifying the disconnects. So you've clarified your values. Now comes the eye opening part, comparing your stated values with your actual spending. This is where the rubber meets the road. Here's how to do it.
Josh:First, pull your last two to three months of spending. Look at credit card statements, bank accounts, cash flow, whatever you use. Second, categorize each expense. Write down categories like housing, food, travel, entertainment, giving, education, health, etcetera. Number three, match categories to values.
Josh:For example, if one of your values is health, gym membership and fresh groceries support that. If your value is generosity, charitable giving supports that. Step four, look for mismatches. Are you spending 20% of your income on restaurants but only one percent on family experiences even though family is a top value? That's a disconnect.
Josh:This exercise is often humbling. Most of us discover that our money tells us a different story than our values. Here's a simple example. Maria says she values education and growth, but when she looked at her spending, she realized she spent $250 a month on impulse Amazon purchases and only $20 a month on books or courses. That's a mismatch.
Josh:By simply redirecting $100 a month from Amazon toward courses or coaching, she could live more in alignment. And here's the key insight. Small shifts can make a huge difference. You don't have to overhaul everything overnight. Often moving just five to 10% of your spending into areas that reflect your values can dramatically increase your satisfaction.
Josh:Let's step into the fourth step of practical spending. Now that you know where the disconnects are, let's talk about how to realign. Here are five practical strategies. Number one, build your budget around values, not just categories. Traditional budgets start with categories, housing, food, transportation.
Josh:That's fine. But try layering in values. For example, instead of entertainment, call it family experiences. Instead of miscellaneous, label it learning and growth. This reframe spending as intentional.
Josh:Number two, automate valued based spending. If generosity is important, set up automatic giving. If future security is a value, automate contributions to retirement accounts. Automation ensures your dollars go to the right places before lifestyle creep eats them up. Number three, use the joy per dollar test.
Josh:Before a purchase, ask, on a scale of one to 10, how much joy or alignment will this bring me? A latte might be a two, while a weekend camping trip with family might be a nine. Redirect money toward the eights, nines, and tens. Number four, create a values fund. Set aside a monthly amount specifically for something tied to your top values.
Josh:If that's adventure, it might be a travel fund. If it's learning, it might be a professional development account. And number five, do a quarterly values check-in. Life changes. Your values may shift, or your financial situation might evolve.
Josh:Every quarter, sit down and ask, is my spending still aligned? If not, adjust. Here's a practical case study. Let's say Jessica realizes her top values are health, security, and community. She cuts her $300 per month restaurant habit down to $100 and redirects $200 into a fresh meal delivery plan that supports health.
Josh:She boosts her emergency fund by $150 per month, aligning with security, then she starts giving $50 per month to her local food pantry supporting community. Now her spending reflects her heart, not just her habits. Okay. Now number five are the common pitfalls to avoid. As you try to align spending with values, watch out for these common mistakes.
Josh:Pitfall number one, confusing wants with values. Sometimes we justify impulse buys by labeling them as values. Oh, I value relaxation, so I bought this $5,000 massage chair. Be honest with yourself. Does it really align, or is it just rationalization?
Josh:Pitfall number two, living by other people's values. Social media can make it feel like you should value luxury cars, big houses, or expensive vacations. But remember, values are personal. Don't let outside noise drown out your true priorities. Tipfall number three, all or nothing thinking.
Josh:You don't have to perfectly align every single dollar. If you beat yourself up every time you slip, you'll burn out. Aim for progress, not perfection. Pitfall number four, forgetting future you. Spending alignment isn't just about today.
Josh:It's also about your future. If you value freedom and peace of mind, that means prioritizing savings and retirement planning now so that your future self has options. Pitfall number five, not involving your partner. If you're married or in a long term partnership, you both need to be on the same page. Misaligned values can lead to conflict.
Josh:Having these conversations together is key. Let's bring it all together now. We've talked about the importance of aligning your spending with your values. Remember, the key points. One, values are the foundation.
Josh:They define what truly matters in your life. Number two, clarity is power. Use exercises to discover your top three to five values. Number three, audit your spending. Compare your money flow with your stated priorities.
Josh:And number four, make small shifts. Redirect dollars into areas that support your values. Automate and build habits around them. Number five, avoid pitfalls. Don't rationalize once, copy others, or forget future you.
Josh:At the end of the day, money isn't about numbers. It's about meaning. And when your spending reflects your values, you'll feel more fulfilled, more purposeful, and more in control. If you've been frustrated with budgeting in the past, try this approach. Instead of cutting back on lattes just because a guru said so, focus on aligning your dollars with your dreams.
Josh:That's a much more sustainable way to live financially free. And remember, financial planning is about helping you achieve freedom for personal significance. It's not just about wealth. It's about purpose. So if you'd like to take the next step in exploring how your money can serve your life, not the other way around, I encourage you to reach out.
Josh:I'm Josh Duncan, partnered f five Financial Planning. If you would like to learn more about how we help our clients achieve financial freedom for personal significance, please visit our website at www.f5fp.com. Thanks for watching, and I'll see you in the next video.