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Value-Based Spending

finance · medium · 2 hours initial audit, 1 minute per purchase decision

What is Value-Based Spending?

Identify your top 3-5 core values, then audit every recurring expense against them. If a subscription, purchase, or habit doesn't serve a core value, eliminate it. Redirects money from autopilot spending toward things that genuinely matter to you. Not about spending less — about spending right.

Is there evidence for it?

EVIDENCEmoderate

How do you do Value-Based Spending?

  1. 1.Write down your top 5 values (freedom, health, creativity, family, adventure, etc.)
  2. 2.Pull 3 months of bank/credit card statements and categorize every expense
  3. 3.Rate each category 1-5 on how well it serves your values
  4. 4.Cut or reduce anything rated 1-2 — redirect that money to categories rated 4-5
  5. 5.Before any purchase over $50, ask: 'Which of my values does this serve?'

How long does it take?

2 hours initial audit, 1 minute per purchase decision.

Is it hard to start?

medium.

Source: Vicki Robin, Your Money or Your Life (1992); adapted by Ramit Sethi and minimalist finance community
finance · values · mindfulness · spending · intentional
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