Mindful spending: how to align your values with your finances

We live in a fast-paced and fast-growing world where consumerism has taken the stage. Our behaviours are driven by many different factors: advertising, social pressure and the belief that having more and buying more will give us a better quality of life, despite all the economic, social and environmental consequences this lifestyle brings with it.

Mindful spending is first of all a choice, and it’s the choice and intentional approach to financial decisions and purchases that allow individuals to make “better” choices that somewhat align with their values. It might not be the easiest option always available, but incorporating mindfulness into our spending habits will help everyone in the long run.

What is ethical consumption… and is there even such a thing?

The concept of mindful spending and ethical consumption is complex and nuanced. While capitalism is criticised for being the underlying cause of social and environmental concerns and issues, by prioritising profit over society, individuals can still find their own way to navigate the system and make more ethical choices.

Ethical and mindful consumption is a lifestyle that prioritises ethical practices, fair labour conditions and sustainability over mindless buying for the sake of buying.

1. Reflect on your values

Before jumping impulsively into the first thing you see online, take some time for yourself to rethink it and have some time for introspection. Try to work on yourself and identify your core values and priorities in life and work. What is something you want to strive for and protect? Is it sustainability, community, education or something else? Once you’ve narrowed down your values they’ll guide you, serving as a compass for your financial decisions.

2. Create a budget

Once you’ve identified what you like and dislike, what your values, are and how you want to move in order to respect them, you’ll need to create a budget that reflects them.

Try not to make it an excuse to spend more money than you have. Budgeting, even if it’s aimed “in the right direction”, involves cutting back on expenses and reallocating funds to areas that do. Budgeting, as a practical tool, will help you ensure that your money is being spent in line with your priorities.

3. Experiences over things

This point connects directly with the second one, emphasizing the importance of valuing experiences over accumulating material possessions. The rationale here is straightforward, yet it’s backed by research: people who prioritize experiences over physical goods often experience a more enduring sense of happiness. Choosing to invest in personal growth and memory-making with cherished individuals is a conscious approach to enriching your life and strengthening relationships, without the need for acquiring more items.

4. Support ethical and sustainable practices

What are the ethical and environmental impacts of your daily or monthly purchases? If you can, try to take into consideration the direct support of businesses and locally owned and distributed products rather than getting the first product you see in front of you. When choosing where to spend your money, consider factors such as ethical labor practices, eco-friendly manufacturing, and the values of the sellers. Aligning these aspects with your personal values enhances the impact of your purchases. Engaging with small local businesses, participating in sustainable neighborhood markets, and supporting fundraising initiatives are excellent ways to invest in your community while contributing to a more sustainable global environment.

5. Practise delayed gratification

What is delayed gratification? In short, it’s the ability to resist impulsive purchases while seeking for the immediate rewards of a dopamine hit. Resisting the temptation of this “immediate reward” in favour of a more significant and longer-lasting benefit in the future.
Impulsive purchases are, most of the time, useless purchases. Practising delayed gratification will give you the time to consider whether a purchase truly aligns with your values and really adds into the person that you’re trying to be or become.

6. Embrace minimalism

Becoming a minimalist and adopting a minimalist lifestyle will definitely help you on the journey of aligning your spending with your values. Quality over quantity is a great mantra, and a minimalist lifestyle is a powerful tool you can use for your own good and for the good of your values. “Declutter” your mind and your living space, a clear mind and a clear house will help you form a new and deeper appreciation for what really matters.

7. Gratitude

Being mindful is all about mindfulness (duh), and one of the main pillars of mindfulness is gratitude and its practice. Fostering and growing a heightened sense of awareness of the value of the things you own and want will help you to be less susceptible to succumbing to the constant desire for more. Gratitude encourages a mindset shift from scarcity to abundance, pushing you to focus on what really matters and what will really help you and fulfill you in the long run.

Once you’ve decided that you’re fulfilled, you’ll be more likely to make mindful spending decisions. Your financial resources will more likely end up in experiences and purchases that align their values with yours and will contribute to a meaningful and happy life.