Your Money Values & Budget

Setting a values-based budget

Former U.S. President Barack Obama once said: “A budget is more than a series of numbers on a page; it is an embodiment of our values.” 

Our values represent the principles that grant significance and purpose to our lives. When we align our actions with these values, we're happier. Conversely, a spending plan that doesn't align with our values can lead to financial stress, which may adversely affect our mental and physical well-being.

By utilizing our values, we can identify both short-term and long-term goals and establish monthly plans to achieve them. Values serve as useful reminders, particularly when motivation dwindles or obstacles arise, reinforcing why we are working to achieve our financial goals. During financially tough times, values assist us in determining which expenses to keep and which ones to cut.
 

Values-based budgeting tips

Get started by trying these quick tips:

Tip 1: Use two months of bank and credit card statements to identify your current income and spending patterns. Make note of any transactions that prompted a strong emotional reaction (for example, joy, regret/distress). 

Tip 2*: Find a budgeting system that works for you. Take a look at the 50/30/20 method, the zero-balance method, or the pay-yourself-first approach. Also take a look at the budgeting tools out there, like budgeting apps, spreadsheets, the cash-envelope system, or the trusty pen-and-paper method. Try each one out to see what fits your current lifestyle.

Tip 3: Be sure your spending plan includes a savings category for your short-term and long-term financial goals. Treating your savings like a bill will make sure you stay on track with your money goals and have savings ready in case of emergency and for planned celebrations.

What's My Money Story?

We help those making less than $70K have a safe space to talk about money and hold each other accountable. Our Money Match Program pairs two people with similar goals and financial situations together to be accountability buddies and talk openly about their goals, and the steps they are taking to achieve them. 

It's free and open to everyone, but we especially want to create a safe space for People of Color to talk about their goals and achieve them faster.

*Disclaimer: We don't get referral fees for any product or resource recommendations. And listing a resource in this newsletter does not constitute an endorsement of its services/products.