Want to have more clarity and control around your spending in 2023? Below I’ll share how to build a mindful spending habit.
I haven’t maintained a personal budget for years. They never really worked for me. After trying and failing at budgeting, I finally found a better way.
Automating your finances (giving every dollar a job) coupled with mindful spending is the winning solution for managing my spending and ensuring it’s aligned with my vision and goals.
Mindful spending is a conscious and intentional approach to managing money that enables you to align your actions with your values and priorities.
If this doesn’t sound like how you operate today, don’t fret. Our biology and the external world conditions us to be mindless with our financial decisions. But you can change that trajectory right now.
In order to make mindful spending decisions, you must first get clear on the vision for your life and what you truly value. This will guide your goal-setting and help to prioritize your spending.
We make mindless decisions when we’re pressed for time and in situations that make impulse choices too appealing. To counter this, plan your spending in advance and if you face an unexpected choice, buy yourself more time (24–48 hours) before deciding.
It’s important to categorize your spending so that you can identify patterns. But this doesn’t have to be time intensive or involve a bunch of spreadsheets. Just download a money management app like Empower and let it do the work for you.
After categorizing your spending, determine how much money you want to allocate towards your goals, bills, and recurring expenses. Then whatever is left over transfer to a special account from which you can spend freely on whatever you believe aligns with your vision and values. Download my free Essentials of Money Management Guidebook for detailed steps to automate your finances.
Keep a pulse check on your spending (only 15 minutes per week) and try to just observe, not judge. When you are tempted to label something as mindless or bad, simply say “oh, that’s interested” and explore the situation, behavior, and mindset that led to those results.
Forgive whatever actions you have deemed to be mindless and shift your focus towards being grateful for what is going right. Making gratitude a daily practice will help condition your mind to appreciate what you have instead of seeking fulfillment through spending.
want to be added to my list to learn about new products and services?
*I take your privacy seriously. No spam ever.
you're all signed up!