Learning how to prioritize spending is one of the most powerful financial skills you can develop. When you prioritize spending on what truly matters, managing your money becomes easier and more joyful. Let’s talk about happy spending… because your money should bring you joy, not stress!”
3-Steps to Prioritize Spending on What Brings You Joy
Science shows that spending money in ways that brings us joy and happiness leads to… well, more joy and happiness. A study conducted by The University of Texas highlights this. The study reveals three areas that bring lasting joy: experiences, not things; giving to others; and “buying time” which is when you buy back you time by hiring someone to handle tasks.
So, how do you get in position to spend money on things that bring you joy?
Here’s 3 easy steps:
The first step toward happy spending is figuring out what truly brings you joy. Â Is it those weekend getaways with family? Maybe it’s that Friday night dinner out with friends.
Whatever makes you smile, write it down! These are your joyful spending habits that you want to focus on.
Do some homework to determine what it will cost you, then depending on cost, divide it up over a few payperiods or months… in short, plug it into your spending plan as a monthly item.
How to Identify and Eliminate Wasteful SpendingÂ
Now, let’s flip the script. Take a look at your spending and ask yourself: “Is this really making me happy?” If not, it’s time to cut it loose. That extra latte every morning or the subscription you forgot you had? These might not be aligned with your smart spending habits. Don’t worry, ditching these expenses is guilt-free – you’re just making room for what really matters.
Here’s a statistic that may get your attention – the average American wasts $139/month on forgotton subscriptions. That could be a really nice dinner out – or the cell phone bill covered.
I’ve been on a misison to eliminate subscriptions I no longer use. It took making the decision, carving out an hour or two of time…but it saved me $87 a month. Money I was throwing away, now back in my wallet.
Here’s an action step you can take – audit your spending from last month. Just last month. Use your bank app or pull a statement. See what’s in it, all the details. Look for clues.
Why Prioitizing Spending Creates Financial Freedom
Traditional budgets focus on restriction. A values-based spending plan focuses on intention. With intention comes peace of mind, less financial stress, and better alignment with our goals.
Creating a spending plan that revolves around your happiness doesn’t mean restricting yourself. It’s about choosing wisely and directing your money toward things that enhance your life. Happy spending means you’re in control, spending intentionally (not recklessly), and still living your best life!
Track Your Progress: Celebrating Smart Spending Wins
When you start prioritizing your joyful spending, celebrate it! Every time you make a choice that aligns with your financial priorities, you’re taking a step closer to financial freedom—and having fun while doing it.
What Does It Mean to Prioritize Spending
Prioritizing spending is all about deciding what is necessary, important, valuable, “nice-to-have”, and your wants. All within the framework of your income and your overall financial goals. Having this skill in your toolbelt allows you to make thoughtful spending decisions and work, not only toward your goals, but also toward your dreams.
Both your needs and wants will change over time, so this exercise is one you will revist over time. Here’s an example: the kids have grown and moved out and you don’t really need that big SUV anymore. Maybe you dream of something sportier. You don’t need the SUV, you want the sports car.
To maintain or improve your finances, without affecting your lifestyle, it may require making some trade-offs in other areas. Ask yourself what you would be willing to give up to have this new item or experience? How much will it really cost? And then, is it worth it?
The bottom line is this… what matters most to you? And what steps do you need to take so it aligns with your overall financial goals?
The 5 Categories Worth Prioritizing in Your Spending Plan
- Experiences that create memories
- Health and wellness investments
- Relationships and quality time
- Personal growth and education
- Long-term financial security
Common Spending Traps That Steal Your Joy
- Keeping up with the Joneses
- Emotional or impulse spending
- Subscription creep
- Sales and “deals” on things you don’t need
- Guilt spending on others
Your Mission to Prioritize Spending: Write down your top 3 joyful spends today. Let’s make space for what makes you smile!
Join Us, October 16th
Fearless Money Mind Summit
Be sure to join our upcoming summit, Fearless Money Mind, which begins October 16th! Â It’s completely free, and it is online. Just bring your pretty self!
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