Value-Based Spending Actually Can Buy You Happiness

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Value-based spending is exactly what it implies. It’s focused spending on the things, services or experiences that add the most value to our lives. That’s something very different for everyone, but the point is the same – optimize your spending on the places that mean the most to you.

Value-based Spending Can Help With ADHD Impulsive Spending

One thing I’ve noticed as an ADHD coach is that my clients tend to spend erratically based on the emotional state they are in at the time. If they are in a moment of novelty seeking, they might buy hobby equipment before ever seeing if they like the hobby. Or just spending money they don’t have to fill an unmet need in the moment.

I know this habit all too well because I dealt with it as well.

But once I became aware of why I was spending (ie unmet needs and impulsivity driven by an ADHD brain), and was clear on my values, I was able to manage my spending much more.

• I learned how to put parameters around my spending, by acknowledging what was “worth the money” and what wasn’t.

• I went through a process of decluttering all my pass impulsive purchases. Having to physically deal with the things I’ve purchased and never used was a wake up call that stuck with me.
• I eliminated the triggers that encouraged me to spend, like instagram ads for Amazon and other retailers. I unfollowed anyone on social media who’s content revolved around shopping and sharing purchases.

Finally, I got really clear on what I wanted for my life. What actually moved the dial for my happiness and satisfaction. In other words, I got crystal clear on my values and allowed myself to spend in those domains when I wanted to (so I never felt deprived).

For me, this includes important things like fitness (instruction and gear), healthy food, courses (because I love to learn) and travel. I honor these things because I’m passionate about personal growth and feeling my absolute best. It’s important to me. I don’t over spend, but I don’t question the dollars that go to these expenses because the happiness payoff is huge in my mind, as it’s supporting my personal values of health, fitness and personal growth.

[bctt tweet=”Money CAN buy happiness: Spend on the things you value. Be frugal with all other expenses.” username=”@fundinghappy”]

This is why the theory of “keeping up with the Jones’” is so ludicrous. In theory, the Jones’ are investing in what they think adds value to their lives, so why on earth would you compete with their personal interests? There is no Jones out there with the same ideals, values, and interests as you, so why look beyond yourself as a measure of what’s important to accumulate?

If there’s a single message I hope to convey through this blog post, it’s that focusing on value-based spending will bring the most joy, satisfaction, and quality of life to anyone who intentionally practices it.

How to Design Your Own Value-Based Spending Plan

First, take an inventory of the experiences, services and things in your life that you truly value. Create a top 10 list. Is it health and fitness? Nice clothes? A housekeeper?

Now ask yourself why you made those choices. What values do those choices support? Freedom? Beauty? Comfort? Peace? What needs are your top 10 choices filling for you?

Once you get clear on the values that your top spending categories support, ask yourself – what’s enough? If you value clothes, how much is enough? Are you overspending in that category? Or would you like to spend more?

Maybe one of your top 10 value-spend categories is snowboarding. Maybe you love being on the slopes, going on trips with your friends or family. Are you spending enough in this category? Would you like more time to snowboard? What other spending can you cut back on to make time for this experience that brings you joy?

The key here is to know what “enough” is. You may have spent all the money you need in one area of value-spending. Knowing that gives you the intentional freedom to spend in other areas where you want to invest more.

One last thing I recommend doing is keeping track of this list and revisiting it periodically. The first time I wrote this blog post, I listed things like expensive wine and having a housekeeper. I no longer spend in either of those categories because my values and life circumstances have changed.

So make a point of revisiting your list often so you’re always feeling connected to your values, and how you’re supporting them financially.

Hope that helps!