Many people hate budgeting because it feels restrictive, and reviewing past spending reminds them of their financial mistakes.
But what if your budget actually reflected whats important to you and made you feelgoodabout your financial decisions?
Thats what values-based budgeting is all about.
This budgeting method prioritizes what you value in how you allocate and spend your money.
How to Create a Values-Based Budget
Values-budgeting requires you to take some time out for introspection.
Think about what really matters to you, and adjust your spending habits accordingly.
The latest tech gadgets?
No Interest Til Almost 2027?
Take a deep dive into your spending history.
Reviewing bank statements from the last three months can help.
Where is your money going?
What surprises or disappoints you the most?
If your spending seems to be in line with your values great!
Youre already inadvertently practicing this money management method.
No judgment on what that is its about what matters most to you.
If youre a sports fan, grab those season passes.
Or make room in your budget to splurge on boutique fitness classes if youre passionate about health and wellness.
Its very much open to your own interpretation.
Living far from your downtown office and the local restaurant scene may save you money.
Dont ignore essentials either.
Wherever it’s possible for you to eek out savings, put that money toward spending that you value.
Budgeting will no longer be about what youcantdo, but more about what youcando.
Create a budget that works for you with ourbudgeting bootcamp!
Nicole Dow is a senior writer at The Penny Hoarder.
