Our fundamental principles play a crucial role in shaping our identity, yet we often underestimate the significance of intentionally reflecting on, articulating, and understanding them. For those looking to enhance their relationship with finances, pinpointing your fundamental financial principles is an excellent initial step and a great way to begin the New Year!
Monetary values are the beliefs and principles that can shape your relationship with money. Knowingly or not, they will have a large effect on how you see, spend or invest your money. Because everyone views money through a different lens, the priorities you have may vary from those of your neighbor or even family members. Here are some examples of different values that can affect where you place your wealth:
For those who find peace and purpose in creating a secure haven for themselves and their loved ones, the value of security takes center stage.
If your heart lies in making a positive mark on the world and leaving a legacy, funneling your finances toward impactful causes is all about prioritizing the bigger picture.
Now, if experiences are your love language, spending on travel and events becomes a heartfelt investment in crafting memories that'll be cherished forever.
And budgeting for your personal indulgences? That's a nod to values like self-care and self-expression, just as long as you keep the reins tight and steer clear of the overspending zone!
In the absence of a clear understanding of one's values, maintaining consistent alignment with them becomes challenging. Choices made without this clarity often lead to subsequent regrets, as they may inadvertently conflict with unrecognized core values.
After taking the time to gain insight into your priorities, a deliberate examination of financial decisions through this newfound lens becomes possible. This process gives a deeper sense of purpose to our financial interactions and, by extension, to our overall life experience.
Questions to help determine your money values:
Reflect on your money beliefs you learned from childhood: How did you parents or caretakers handle money? What did you learn directly or indirectly from their habits?
Consider how money influences your life and identify your motivations: What is important to you? What are your 'whys'? Examples can be Family, Education, Retirement, Giving, Mental wellness etc.
Outline your financial goals: Are you looking to save up to buy a home? Are you looking to minimize your debt?
Consider your personal values and ethics: What causes matter most to you? How do you want to treat those around you? Do your beliefs have an impact on how you spend?
Determine your priorities: By keeping these priorities at the forefront of your mind, you'll find motivation and support in navigating your day-to-day financial decisions.
Periodically revisit and refine your values: As you move through different stages of life, your values may change and with that so can your planning!
It would be wise to consider your values alongside your goals. Your goals represent the actionable steps and desired outcomes, whereas your values provide the significance behind these objectives. Ultimately, the responsibility lies with you to maintain accountability, as your values are a personal matter. Creating your list is only the beginning; the true impact materializes when you actively incorporate these values into your every day life!