MONEY THAT MATTERS: ALIGN YOUR CASH WITH YOUR VALUES
The new year is when we usually reset on things we know we should do but don’t always do. Spend less, exercise more, cut back on late-night snacking, go to bed earlier … blah, blah, blah.
We can’t help with snacks and leg curls. But we can help navigate the money part, and from a larger perspective, ensure your money serves a greater purpose, and that every dollar you earn, spend and save better aligns with your values.
Aligning your money to your values is like finding a map to a treasure chest. Both the money and the map lead to the “gold” as you define it.
When your money aligns with what truly matters to you, you’re also more likely to find fulfillment in financial planning.
Creating a financial plan that truly fits your values is about making intentional choices, not just analyzing numbers. (Ebenezer Scrooge, anyone?)
Take these steps to use your money as a tool to align your money with your values and lead a life of joy and purpose.
First, figure out … what are your values? Start the process of looking inward by answering the following questions. We encourage you to write out your answers for more thoughtful, thorough and honest responses.
What purchases or experiences have made me feel the happiest or most fulfilled?
Where do I currently feel tension, guilt, or regret regarding my spending or financial decisions?
What does “financial success” look like to me personally, free from societal expectations?
What core principles (e.g., security, freedom, family, community impact, sustainability, personal growth) guide my life decisions?
If all my financial worries went away tomorrow, how would I live my life and what would I prioritize?
Transform those values into financial priorities. This step connects your values to actions.
If you value stability, for example, saving to avoid unnecessary debt is a priority. If you value personal growth, you’ll allocate money to learning, books, courses. You want to make a difference in your community? Part of your plan will include money earmarked for charities and causes that matter to you.
Once your values are clear, convert them into concrete, measurable financial goals. The SMART framework (Specific, Measurable, Achievable, Relevant, Time-bound) sets you up to do that. Take time with this step, don’t skimp or rush through it, as it sets your course, moving ideas into tangible action. Here’s an example of how you could organize this step:
MY VALUE: SECURITY
My Big Idea: Save more money.
My SMART Goal: Build an emergency fund covering six months of expenses within two years.
MY VALUE: GENEROSITY
My Big Idea: Give back to the community.
My SMART Goal: Establish a donor advised fund and commit to annual contributions by the end of next year.
MY VALUE: ADVENTURE
My Big Idea: Go on a big trip.
My SMART Goal: Save $5,000 for a bucket-list trip to New Zealand within the next 18 months.
MY VALUE: FAMILY
My Big Idea: Plan for my children’s future.
My SMART Goal: Open a 529 college savings plan and automate $200 in monthly contributions.
Now, imagine yourself successfully living your life of meaning. What does it look like, this ideal future, five or 10 years from now, even in 20 years? Are you working for yourself? Supporting your grandchildren’s education? Supporting various community endeavors through your donor advised fund?
This visualization of your meaningful life becomes your north star for financial planning. Seeing is believing.
Here’s the challenging part: Following through on the plan, walking the talk.
Here’s a few tips to help with accountability. A line that sticks: The only way to turn your motivation into success is through persistence.
It’s time to align your money with your values. Begin by reviewing your current budgeting, spending and saving patterns. Do they reinforce what you set down as a value?
BUDGETING
Create a values-based budget. Many people shrink at the idea of budgeting. But what if you flipped the mental script and started seeing budgeting this way: It’s not a set of limits. It prioritizes what you’ve set out as most meaningful to you.
Budget helpers:
Automate where you can. Set up automatic transfers to savings accounts, investment funds or charitable contributions that reflect your priorities. Automating these payments makes good financial habits happen every time without having to think or stress about it.
Reduce spending in areas that don’t align with your values. Adding small barriers, like waiting 24 hours before buying or removing saved payment methods on retail websites, helps curb impulse spending.
SPENDING
Value-based spending doesn’t mean spending less. It means spending intentionally and reducing the amount you spend on impulse items. A simple rule of thumb is to ask yourself:
“Does this purchase align with my values?”
“Would my future me thank me for buying this or regret it?”
Note here that it’s also important to create a “guilt-free” spending category in your budget by setting aside a small amount for treats, fun or hobbies you value. This prevents burnout and overspending later.
SAVING
Use your SMART goals as your savings guide—what you value as worth saving for.
To align your money with your values, use socially responsible investing (SRI); environmental, social and governance (ESG) investing; and impact investing. These strategies involve selecting savings and investment vehicles that support causes you care about, in addition to providing financial returns.
If your goal is safety and liquidity (easy access to your cash) for an emergency fund or a short-term goal, consider high-yield savings accounts or money-market accounts.
Good savings tools for supporting charities include donor advised funds, which offer immediate tax deductions and tax-free growth for planned giving, as well as strategies like donating appreciated assets (stocks, real estate) and leveraging retirement accounts (QCDs) for tax benefits.
One foot … that’s the most important step.
This week, try one small step like canceling a subscription you don’t use, setting up a savings goal that excites you, saying no to an impulse buy.
And remind yourself that you’re in charge of your money and from now on, it’s working to create a life of joy, purpose and far greater intention.
At Alia, we can walk with you through the process of aligning your money with your values. Contact us today to get started We’re happy to help.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results.
The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
Government bonds and Treasury bills are guaranteed by the US government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
The fast price swings in commodities will result in significant volatility in an investor’s holdings. Commodities include increased risks, such as political, economic, and currency instability, and may not be suitable for all investors.
Disclosure: Content in this material is for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. All investments involves risk including loss of principal. No strategy assures success or protects against loss.
The content provided herein is based on our interpretation of the One Big Beautiful Bill Act and is not intended to be legal advice or provide a tax opinion. This document is a summary only and not meant to represent all provisions within the One Big Beautiful Bill Act.
