Business
Are you looking for a way to save more money and still be able to spend on the things you enjoy? If so, you need to practice value based spending. In this week's episode, we'll be talking about what value based spending is, how it works, and why it lets you enjoy your money while still pursuing financial goals. What is Value Based Spending? If you've never heard of value based spending before, it's basically a way of allocating your money based on what you truly value and enjoy. Instead of a traditional budget where you might be tracking every penny you earn and spend, with value based spending you simply make conscious decisions about what to spend money on. This can be a lot more freeing than living with a bare bones budget, which is what a lot of people start with when they first begin budgeting. But after a while, a bare bones budget with no room for spending on fun can lead to feelings of deprivation and burn out. On the other hand, value based spending can also help you avoid spending money just to spend it. For example, maybe you used to put money aside in your budget for eating out every month. But, after some self-reflection, you realized that eating out is not something you care about and you'd rather spend money on other things. Instead of continuing to include that in your budget, you can instead put that money toward other things you do care about. Basically, value based spending is just about not getting caught up in spending money just to spend it. But instead, it's about spending only on your necessities and the things you care about. How to Get Started with Value Based Spending To get started with value based spending you have to commit to making a mindset change. It's definitely different than traditional budgeting. For some, that means giving themselves permission to spend money on things other than the bare necessities. But for others, value based spending means learning that it's ok to stray from the norm. Self-reflection is a must to figure out what your values are. You also have to be ok with explaining your values and sticking to them when others may be trying to get you to stray. It can be difficult to stick to value based spending if you are easily influenced by society's expectations, advertisements, and peer pressure. Value based spending is not something that everyone has committed to practicing. But, if you truly give value based spending a chance, you'll likely find that it's good solution to both saving money to reach your financial goals and being able to spend money on things you enjoy. In This Episode, We Discuss: 1:10 - Value based spending 14:10 - How you started value based spending 25:45 - Impulse buying Related Links to Check Out: The Importance of Defining Your Values Minimalism and Money The Importance of Tracking Your Spending This episode was brought to you in part by Audible.com. You can listen to any audio book for FREE with a 30 day trial using our link!