How To Spend, Save, and Invest In Alignment With Your Values

Spending Money in Alignment with Your Values

In this blog, you’ll learn the importance of spending, saving, and investing in line with our values. Most budgeting or spending plans focus on how to cut spending without taking into account the importance of whether or not what we are cutting is something of value to us. When we spend in alignment with our values, it helps us to feel more balanced in our financial relationship. Spending in alignment with our values can lift those uncomfortable feelings associated with our money. In this post, I’ll provide examples of spending, saving, and investing in alignment with your values, and will also include a money affirmation that you can try out on your own. 

Money is Emotional

If you’re here, you know I practice financial therapy because my belief is that money is about 80% emotional, and about 20% about math or numbers. The more we align our lives with our values, the better we feel. This concept directly applies to our money. In my financial therapy work, I often hear things like money is "tacky" "gross," or "greedy." I hear things about people feeling powerless over their spending, feeling overwhelmed by it, or not knowing how to use their money in a way that feels good for them.

Values Aren’t Things

Here’s where most people get it wrong (it’s not their fault!) when it comes to values-based spending. They think “I value travel, so I spend on travel.” Looks right at first glance, but we need to dig deeper. WHAT about travel is valuable for you? Is it the community, connectedness, compassion for other cultures? Those are the values, and that’s what I want you to think about. Don’t worry, I’ve got a few values-based spending examples coming up.

Spending Money In Alignment with Values

We’ll start with how to practice spending in alignment with your values. If we are spending like crazy on take-out meals, but value sustainability, we probably don't feel great about it. A way to shift spending money on food, while adhering to our beliefs on sustainability, would be to meal-prep at home. That way, you have the quick convenience of take-out but aren't accumulating paper and plastic waste, not to mention the environmental cost of driving to/from your favorite take-out joint. During the pandemic, a way to support your local restaurants when you order take out while still spending in alignment with your values of sustainability is to ask them to hold the utensils and napkins as a way to cut down on waste.  

Let’s try this values-based exercise for clothing. If you love clothes and find yourself swiping your credit or debit card on fast fashion, does that match up with your values of sustainability? Probably not. You may be better off spending more money on fewer high-quality pieces, or shopping at a local consignment store for unique finds. 

Another thing to consider when you are trimming from your budget is whether or not that expense is important and valuable to you. For example, during the pandemic, I miss my in-person workout classes and at the same time, value moving my body and (for me most importantly) having someone else lead me through a workout so I don’t have to think about it. For me, I COULD trim the monthly spending on a workout streaming service, but it’s more important for my physical and mental health to continue the spending. Keep these types of things in mind. It’s easy for a personal finance guru who doesn’t know you to spout shame on small, recurring expenses, but for you, it might be the exact type of spending you need for your overall well-being. 

Affirmation: I control my money; my money does not control me.

Saving Money In Alignment with Values

How can a person save in line with their values? This one is quite simple. Most of us have our savings account at a bank. Most banks have a mission statement or list where they re-invest. When you read through that mission statement, as yourself, “Does this mission statement line-up with my beliefs? Are their charitable contributions and foundations one I believe in?” Another way to see if your bank’s values are in alignment with yours is to google “Name of Bank + Scandal.” Google has a magical way of helping you find any news of problematic behavior at that bank. Now, if the bank you are currently using has values that line up with yours, perfect! You are all good to keep your savings accounts right where they are. 

Now, if the institution doesn’t align with your values or has had some less-than-savory news reported about them, you may be better off moving your money to a local credit union. Local credit unions are great options to keep your money nearby, and today they offer most of the same conveniences as large banks, such as low-interest rates for loans, online banking, and good interests for high-yield savings accounts. If a credit union isn’t your thing, another great option is an online savings account. There are some great ones with lower fees and higher savings account interest rates that may speak to you.

Affirmation: I am aligned with the energy of abundance. Money and spirituality can co-exist in harmony.

Investing Money in Alignment with Values

Let's talk about investing money in line with our values. Investing mindfully and aligned with our values is a tricky balance to strike for many of us. On the one hand, it is essential to put your money where your beliefs are. On the other hand, if we only invest only in things that precisely align with us, we may not be looking at a diversified portfolio. I often recommend doing the bulk of your investing in something like an index or mutual fund. That will do the diversifying for you. If you'd like to do some other investing outside of that, there are plenty of ways to do so. Remember, the FDIC does not back investments, so only invest money you are comfortable losing outside of your retirement vehicle. Below, I've listed out some ways you can invest mindfully.

• Community Investments: Investing directly in your community. This is the same idea as purchasing goods from a local, small business; you are keeping your dollars in your community, thus helping keep wealth, income, and jobs in your community. You can do this by purchasing local real estate, lending to a non-profit, or investing directly in a local small business. More firms are popping up that are dedicated to helping you invest in your community. They usually have the words, "community capital," or "conscious capital" in their mission statement. If you can't find one, you can reach out to your local business development group or community coalition to see if they can point you in the right direction. 

• Start-ups: Investing in specific, small companies that align with your values. This has become so much easier with the accessibility of crowdfunding. Sites like Indiegogo and Kickstarter are some of the most well-known if you are interested in learning more about investing in start-ups.

• Value-based or Socially Responsible Investments: Investing in more prominent companies that adhere to the same values that resonate with you. This could be companies who value gender equality, don’t test their products on animals, or use alternative energy. It could also be not investing in companies who employ workers with questionable work environments. These used to be trickier to find, but now most large brokerage firms have tools that allow you to screen out or in companies to your liking. Some companies have already created mutual funds that they deem "socially responsible."  

Affirmations: I release all negative energy over money. I use money to better my life and the lives of others.

Spending, saving, and investing money in alignment with your values doesn’t have to be complicated

In this post, I’ve shared with you quick ways to assess whether or not your money is working in a way that supports your unique belief system. When it comes to spending, check-in on how the spending makes you feel. Ask yourself if the spending habits you have are in alliance with your beliefs. Moving onto saving, check with the bank or credit union’s mission and values statement, and do a quick google search to see if there were any recent scandals you don’t want your money associated with. And finally, check out other unique ways to invest from community investing, start-ups, and socially responsible investing. I hope this breakdown helped you find ways to spend, save, and invest your money in alignment with your values!

If you need help with this, check out my book The Financial Anxiety Solution! And if you want more tailored guidance, book a session with me!

Note: a version of this post was originally published on the now-closed website “The Middle Edit” in winter 2019.