You may have heard this before: you can spend your money on anything, but you just can't spend it on everything, right?

This principle applies to almost any resource we have, and because we have limited resources (think: time, energy, and, of course money) we have to make choices about how to spend them. 

(To be clear: I'm not going to tell you where to spend your money, that is not how I work with my clients. But it is my job to make sure that you're spending your money where you want to be spending it -- and that won't be everything!) 

So -- how do you make those choices on where to spend your money? We're going to first figure out what you value most. 

Step One: Pick your three top values 

The first thing to choosing how to spend your money and where to budget it is to pick your top 3 values. Here are some examples: 

• Heath 

• Security

• Travel

• Impact

• Friendship

• God

• Family

• Freedom

• Wealth

• Charity

• Spiritual Growth

• Career/Achievement

• Play/Pleasure

• Community

• Environment

• Personal Growth

• Adventure

• Recognition

Of course, this isn’t an exclusive list by any means. What values jump out at you? Write 3 of them down. 

If you have a partner, I absolutely suggest that you do this exercise together (go ahead and download my free exercise to help you do just that). Oftentimes, you and your partner will share at least one value, however it's not uncommon for the other 2 to be completely different. This exercise can help you open up the conversation with your partner about what you both want to do with your finances and other resources. 

Step Two: Figure out how much you're spending and where 

Now that you have your top 3 values, let's figure out how much you're actually spending towards those values. 

Pull out your statements and spending numbers, and figure out how much of your budget is going towards those top values you've identified. 

If you don't see a lot of money going towards them, we're going to look for ways that we can cut spending for everything that isn't a top value. Remember to hold your top values as sacred, and be ruthless with everything else. After all, we've already identified what your top values are, so everything else is not going to be as important to you. 

Look at your spending and identify what you can cut spending on to be more in line with your values. What jumps out at you as a good start to begin cutting back on? 

Step Three: Be ready to revise your budget and spending 

You've identified your values that you want to fund, and may already have some ideas on what you can cut to bring your actual spending in line with what you want it to be. You're done, right? 

Well, maybe. 

It's important for you to check in periodically and confirm whether the values you picked are still the most important ones for you at your current life stage. 

For example, your top values right now might be your children, your career, and freedom. If you do this exercise before you have children, obviously they’re not going to be on there. And in the future, your health might replace one of those as a top value. 

It's very normal and expected that you will have very visible changes in your value system! So when things change in your life, be sure to check in with your budget and make sure that your spending always reflects what is most important to you at your current life stage. 

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So there you have it -- 3 steps towards budgeting in a way that makes you spend your money according to your values. 

Did you have trouble cutting the not-so-important spending from your budget? Or are you unclear about how you can pick your values in the first place? Or do you just not know what you don't know when it comes to managing your money?

I invite you to schedule a completely free call with me. Just click here, pick a time that works for you, and we’ll have a no hassle chat!