If someone asked you what your money is worth, do you know how you would answer? Or would you be left blank looking for the answer?
Our values are a very important part of who we are, yet we often don’t take the time to deliberately think about them, define them, and understand them!
Understanding the principles of money is a great first step for anyone looking to change their relationship with finance.
Let’s find out what exactly this is, why it matters, and how to determine your own set of financial values.
What is value for money?
In short, it is beliefs and principles that (consciously or unconsciously!) shape our relationship with money. In addition, it motivates various decisions regarding saving, spending, investing, etc.
Priority example
For example, if you see money as a tool to help others, one of your core values is Generosity.
If your goal is to build a large investment portfolio for early retirement, etc., perhaps freedom(“financial independenceFI for short! )
Motivated by the idea of using money to build a secure and stable life for oneself and one’s family safety.
Money may help you do good and leave a mark in the world. In that case, prioritize the following: impact When heritage.
if you cherish experiencethey will happily spend their cash on things like trips and events that can create memories they will cherish forever.
A budget for yourself/your desires can demonstrate positive values such as self care Also self expression(Unless you’re in control and don’t get into wasteful territory!)
These are just a few examples of what is possible. As you can see, our values do not exist in isolation. They fit our holistic view of what really matters and where we find fulfillment.
Why is value for money important?
They are important because they influence all your financial decisions whether you realize it or not.
your actions Align with your values, you are more likely to know what you want in life. Living your values gives you peace of mind and confidence that you are on the right path.
However, if you don’t really know what your values are, it’s difficult to live by them all the time. you might notice.
Once you understand your priorities, you can start looking at your financial decisions through that lens. It brings a deeper meaning to your relationship with money and your life as a whole.
7 Steps to Determining Your Money’s Value
Ready to start figuring out which financial priorities matter to you? Here are seven steps to help you identify and put your values into action.
1. Reflect on the money beliefs you grew up with
To define what is important to you with purpose and intent, you must first unravel the principles you may have unconsciously developed. And it all starts with formative childhood experiences!
questions to ask yourself
How did your parents/guardians handle money? What lessons did they teach you, directly or indirectly, through their actions?
parent set example can have a profound impact on children’s futures.
One of the core values of money I grew up with was thrift. All my grandparents were formative immigrants during the war and the Great Depression.
Their values of simplicity, frugality and no waste have been passed down through generations.
So how have these learned values affected me and my financial behavior? Never.
I usually don’t replace them until they stop working or literally have holes in them. Shop at a thrift store or wait for a sale. (But I also learned a little balance. I recently stopped using $1 shampoo from the bottom rack. You’re welcome, hair!)
Lessons learned from past money experience
Our childhood teaches us both good and bad lessons about money. Those whose parents prefer spending over saving may want to forget some of their inherited values (eg, instant gratification and materialism). Take the good and throw away the bad!
Try journaling about examples and experiences with money growing up and think about how they can impact you today.
2. Make a list of how money affects your life “why”
Money is part of everything in our lives, from health to careers to relationships. So make your own list of how money is important to you. It will be as follows.
- health: With money, you can buy fresh, nutritious food, join the gym, do fitness for your hobby, and see a doctor when you need to.
- Career: My career is my source of income/I base my career decisions on their financial interests/If I were financially independent, I could pursue more meaningful opportunities.
- family: Money gives families stability, allows them to spend quality time with them, and creates intergenerational wealth and a better future.
- education: I value growth and learning and want to invest in my future self to improve my earning potential/myself as a person.
- Lifestyle: A balanced lifestyle means you can live frugally and save money, but know when to treat yourself and have fun.
- mental health: Financial security reduces stress and anxiety about money.
- give: Money is a tool to support causes that are important to me, like helping animals/protecting nature/supporting disease research/investing in communities.
- Retirement/Future: Saving for retirement means that you can ensure a safe and comfortable future as you grow older.
Think of as many categories as possible and go for them! why Value for your money and behind everything you do.
3. Outline your financial goals
What do you plan to achieve in the short and long term? You can use the list of categories to help you brainstorm your own goals that are tied in some way to finances.
For example, goals can be a combination of:
There are a few tricks to approaching goal setting in a way that increases your chances of success. Learn strategies that can help you achieve your goals in practice.
4. Think about personal values/ethics
probably your money values will stick with you Personal value. What kind of person do you want to be?
What causes are important to you? How would you like to treat the people around you? Additionally, what beliefs and principles do you rely on to guide your life choices?
Establish 5 principles for money
Take a quick detour to our article on how to establish your personal core values.
It may be helpful to read on list of values And see which words resonate with you. Of course you can choose more than five, but try to focus on what really matters most to you.
Think about actions you’ve taken and decisions you’ve made in the past, and what values they represent.
Example value
So if one of your personal core values is thoughtfulnessyou may be more driven to donate your money or dedicate your career to causes that help others.
with core values adventureyou can spend the majority of your budget on travel and experiences.
For those who revolve around core values familyyour financial decisions are directed toward protecting and providing for those closest to you.
driven by success It can help you climb the career ladder or run a successful business.
5. Prioritize
What values and goals are your top priorities, because you can’t do it all at once? Keeping these at the center of your mind will motivate you and help you make your daily financial choices.
It’s much easier to curb impulse purchases when you remember the big picture you’re trying to create.
Saving and investing may feel like a slogan, but the value of money can help you apply meaning to every dollar you set aside so you can build a fulfilling life.
Not sure how to organize your goals and create a priority list? Here are a few steps to help you define your priorities.
6. Take time to reassess your values
As our lives change, it’s natural for our values to change as well. Consider making it an annual tradition to look back on yourself and reflect on your journey, lessons learned, and goals you’ve ticked off your list.
Review the financial priorities you’ve listed over the past few years and see if they’re still the most important to you.
Are they still supporting your personal and financial journey? If not, it’s okay to make some adjustments or start over.
It’s healthy and natural to reinvent yourself once in a while. It happens as we grow, learn and change. You don’t have to be locked into one version of yourself. The same is true of personal values and economic principles.
It’s time to start living your money’s worth!
Creating a value for money list is only the first step. But you never know when these values will begin to influence your life until you put them into action!
Therefore, it is helpful to consider your values and goals in parallel.Your goals are the actionable steps and results you want to achieve, and your values are reason Those goals are important to you.
Ultimately, it’s up to you to take responsibility here. Because no one subscribes to your values but you! Here are some ideas!