Friday, March 7, 2014

Identify Your Spending Values

Baby Step #2

Many of us let money slip through our fingers without giving much thought to the big picture. We often buy the latest and greatest stuff simply because our neighbors do; so we can keep up with the infamous Jones family. Advertisers, the media, and society influence how we spend-- rather than our own internal and personal values.

Why is it important to take this Baby Step?


Identifying, prioritizing and living according to our personal values is key to our financial well-being. Once we've identified what truly makes us tick, our financial decisions will be guided in alignment with our values. If we live true to our values we are bound to feel fulfilled, content, peaceful and happy. Yes, I believe that under these circumstances money can indeed contribute to our happiness.

Instructions:

Identify your top 5 to 10 values. Then briefly define them in your own words and prioritize them in order of personal importance. For the purpose of this exercise let's use this definition of values: “beliefs in which you have an emotional investment; the degree of importance you give to something.”

Here are some examples of values to get you started:

Acceptance
Adventure
Balance
Beauty
Career
Charity
Community
Compassion
Competence
Creativity
Curiosity
Education
Environment
Family Relationships
Financial Security
Fitting in
Freedom
Friendship
Fun
Generosity
Happiness
Health
Integrity
Learning
Love
Prestige
Service
Spirituality
Sustainability
Wealth

Important Note: When defining your list of values, use words that serve as affirmations-- such as “I choose to...” rather than “I wish...”. The ways in which we choose to think directly influences our actual behavior; and in turn, our behavior powers our outcome.

To serve as an example of how to use affirmations with this exercise, Millionaire Mommy Next Door shares her own personal reactions to this Baby Step here.

To double check that you've prioritized your personal values accurately, you might want to consider your answer to this question: What would you do with your money if you were told that you had just a year left to live?

Finally, compare your prioritized list of values with your Baby Step #1 Treasure Map to Riches. Do they match up?

Once you've identified and prioritized your personal values, share them with your family. Understanding one another's values clears up a lot of confusion and conflict over how each chooses to spend their money and their time.

Your prioritized list will prove incredibly useful in an upcoming Baby Step: "Craft a Budget That Fits Your Family's Needs and Wants", so hang on to it!

Want to share your results with this Baby Step? Please share your prioritized list of affirmative values in the comments below.

Related and Recommended Reading:
If you're interested in reading an instruction book for living the life of your dreams, I highly recommend Wishcraft: How To Get What You Really Want by Barbara Sher.

Here's a classic containing terrific values and money content: Your Money or Your Life: Transforming Your Relationship with Money and Achieving Financial Independence.

This book is new and sounds interesting. Has anyone read it yet? Money Can Buy Happiness: How to Spend to Get the Life You Want

Did you miss a step? Want to learn my recipe for success, happiness, and a million dollars? Start here: Baby Steps to Financial Freedom.

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