Making decisions about your money can be stressful. Being clear about the values that guide you can help cut that stress. Your financial wellbeing isn’t just about budgeting or building savings: it’s also about staying true to what’s important to you. And with your core beliefs in hand, you’ll be more able to steer your ship in the right direction.
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What are ‘money values’?
Money values are the beliefs and feelings that help you prioritise what you think is right or best when it comes to your finances. They can come from the world around you (family, friends, cultural background, political beliefs) or from your lifelong experience of dealing with money. They can also fluctuate over time.
For example, you might particularly value some of the following things:
- Saving the planet e.g. buying sustainable products, investing in ESG funds or donating to environmental charities.
- Self-care e.g. getting a monthly manicure, taking a spa break or prioritising healthy foods in your supermarket shop.
- Security e.g. lower risk savings instead of investments, building a rainy day fund for emergencies or buying insurances.
- Status e.g. choosing branded products or luxury goods to signal your status to others.
Why do money values matter?
As our examples show, money values can shape the way you spend and save your money. That’s why people with similar levels of income can lead vastly different lives. Everyone has their own priorities.
Understanding what’s driving your behaviours can be an important first step in being able to make changes to any unhealthy habits. For example, you might realise that although you really value security, you’ve been overspending on self-care, something you don’t truly value. Or you might find out your values clash with those of your spouse, which can lead to conflict.
What’s more, being clear about what you value can help make decision-making easier. You might have only a set amount of disposable income per month; do you spend it or save it? Splurge on a treat or buy something necessary? Making your priorities clear can help you cut the stress of both short and long-term money management.
Finally, knowing your money values can reduce the guilt many people feel about spending. When you’re clear on what’s important, you can prioritise using at least some of your money for the things that truly matter.
How to find your money values
You might already have a good idea of what your money values are. But, if not, here are a few pointers to get you started:
- Look at your recent behaviour: Download your bank statement (or check your transactions in the Maji app) and get honest with yourself. Where are you spending the most money? How does this feel? Are there any transactions you regret? Are there any you remember fondly?
- Link to wider life: Think about what else is going on in your life that might link to your money in unexpected ways. For example, if you love attending the theatre or concerts, you might decide that supporting the arts is a key value for you. If you love spending time with friends, socialising could be your value.
- Envision a ‘Rich Life’: author and expert Ramit Sethi describes the Rich Life as one that looks and feels ideal for you. Try to imagine your perfect day. What would it look like? It might be spent with your family enjoying a day out, or having a fancy meal with friends or just relaxing in a beautiful house. The things that would make your life rich can help you pinpoint your priorities.
Working with a financial coach can be a great way to examine your money values and think about how to put them at the centre of your financial life.
Putting values into action
You don’t need to suddenly change everything to align with your values. Small and simple steps can help make your money management more aligned with your priorities.
For example, if you value supporting your friends and family, you might create a sinking fund for birthday gifts and set up a small direct debit to go into it each month. If you value doing good in the world, you could shift your banking to a more ethical provider. Or if you value physical health, you could adjust your budget to give you more money for exercise classes or to join a better gym. At the same time, you should feel more able to say no to things that don’t align.
You could even get started today!
