{"id":13420,"date":"2025-12-03T16:27:01","date_gmt":"2025-12-03T22:27:01","guid":{"rendered":"https:\/\/www.discover.com\/online-banking\/banking-topics\/?p=13420"},"modified":"2026-02-03T17:00:14","modified_gmt":"2026-02-03T23:00:14","slug":"values-based-budgeting","status":"publish","type":"post","link":"https:\/\/www.discover.com\/online-banking\/banking-topics\/values-based-budgeting\/","title":{"rendered":"How to spend money wisely: Create a values-based budget in 3 steps"},"content":{"rendered":"\n

When it comes to money, everyone has priorities. Whether it\u2019s traveling, getting out of debt, or even committing to a plant-based diet, odds are that you probably have a preference about where you want your money to go. Your purchases make a statement about the things you find important in life\u2014and so do your saving habits.<\/p>\n\n\n\n

For Kara Stevens, the \u201caha moment\u201d came when she realized she was too frugal for her own good.<\/p>\n\n\n\n

\u201cI had gotten to a point where I was financially secure, but I wasn\u2019t enjoying life. I realized that security alone is not the point of living,\u201d says Stevens, owner of a personal finance blog. \u201cYou have to enjoy your money in addition to growing and saving it.\u201d<\/p>\n\n\n\n

She needed to find a balance between achieving her financial goals and enjoying everyday life. For Stevens, exploring her personal values about money helped her develop a budget and lifestyle that left her feeling both secure and satisfied.<\/p>\n\n\n\n

Here, she\u2019ll share observations about her own journey in learning how to spend money wisely, as well as tips for defining financial values. Andrew Schrage, co-founder of a personal finance blog, adds his own insights around setting up a budget based on your values. But first, let\u2019s break down the concept of financial values.<\/p>\n\n\n\n

What are financial values?<\/h2>\n\n\n\n

Financial values are the beliefs and attitudes\u2014conscious and subconscious\u2014that drive your decisions about money, including your spending and saving decisions, Stevens says. So, how do your values inform your spending decisions?<\/p>\n\n\n\n

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For one, your money values may reflect whether you identify as a spender or a saver, Stevens adds. They can also be more specific. For example, if you are vegan, you may plan your spending and investing habits around companies that don\u2019t use or produce animal products. <\/p>\n\n\n\n

Other financial values can be a love of adventure or security, Stevens says. If you\u2019re an adventure seeker, you may get more satisfaction spending money on flights, hotels, and activities while on vacation than through other types of spending. If you value security, you may feel fulfilled by paying down your student loan debt or opening a high interest rate savings account to supercharge your emergency fund.<\/p>\n\n\n\n

But financial values don\u2019t have to be an all-or-nothing proposition, Stevens says. \u201cJust because you value adventure and travel doesn\u2019t mean you can\u2019t value security as well. It\u2019s just the degree to which you may save or spend on a particular thing.\u201d <\/p>\n\n\n\n

Now that you know the basics about financial values, it\u2019s time to explore how to create a values-based budget. You\u2019ll soon be able to answer: How can you set up a budget based on your values? <\/p>\n\n\n\n

What is values-based budgeting?<\/h2>\n\n\n\n

Values-based budgeting is a way to make your voice heard through your wallet. In other words, it\u2019s an opportunity for your purchases to make a statement about the things you find important in life. <\/p>\n\n\n\n

Stevens turned to values-based budgeting in her 20s <\/strong>after realizing she was spending too much money paying down her debts and missing out on the things she actually wanted to do. <\/p>\n\n\n\n

Maybe you\u2019re in a situation like Stevens was, where you\u2019re not feeling fulfilled because you\u2019re depriving yourself of experiences and possessions that would bring you happiness. Or perhaps you find yourself looking at your bank statement each month and wondering, \u201cHow did I spend that much without thinking?\u201d<\/p>\n\n\n\n

With a values-based budget, you can match your financial values to your financial reality and learn how to spend money wisely. <\/p>\n\n\n<\/div>\n\n\n

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“If we make space for
\nboth values-based spending and values-based saving, you\u2019ll find that people will actually save more intentionally and spend with more meaning.\u201d<\/p>\n