What might happen if your financial behaviors don’t align with your values?
Have you ever felt that discomfort when you buy something that doesn’t sit well with your values? Maybe it’s a fancy new gadget, an impulse purchase, or something you know isn’t aligned with your long-term goals. Financial behaviors not aligning with your values might seem harmless at first, but it can lead to serious consequences in your financial and personal life.
I’ve been there. You know, those moments when I felt like I was making decisions based on what society expects of me instead of what really matters. The pressure to spend money on things I didn’t need or want, just because others were doing it, is real. But, as I began aligning my spending with my core values, I realized how powerful and freeing it could be. It wasn’t easy, but the impact on my overall well-being was profound.
So, let’s dive into what happens when your financial behaviors are out of sync with your values and how you can course-correct.
What Are Financial Behaviors and Values?
Before we dive into the potential fallout, let’s clarify financial behaviors and values. Financial behaviors are the ways in which we manage our money. They include how we budget, save, invest, and spend. Our values, on the other hand, are the things we care about most—our beliefs about what’s important in life, such as family, health, security, or personal growth.
If your spending habits align with your values, you feel a sense of fulfillment and peace. But when they don’t, it’s like driving a car with the handbrake on. Sure, you’re moving, but not efficiently.
Financial Stress and Anxiety Can Creep In
When you’re spending money on things that don’t match your values, the first thing that might happen is financial stress. I’ve experienced this personally. There was a time when I spent money on material things because I felt it was expected of me—keeping up with trends, making my life look glamorous on social media, and worrying about what people thought. But at the end of the day, those purchases didn’t make me feel happy or fulfilled. In fact, they created a sense of guilt and financial anxiety.
This is a major warning sign. When you spend money on things that don’t align with your values, it can cause you to feel anxious about your financial situation. You might be living paycheck to paycheck or accumulating debt, and it’s all because your priorities are out of whack. You’re spending money on the wrong things, which leads to constant worry about whether you’re doing the right thing with your money.
The Impact on Long-Term Goals
Another significant consequence of financial behaviors not aligning with your values is that it derails your long-term goals. Think about it: if you want financial independence, travel the world, or save for your children’s education, but you’re constantly buying things that aren’t aligned with those goals, you’re preventing yourself from achieving them.
In my own experience, I realized I was putting off saving for retirement because I was too busy trying to live up to others’ standards. Once I started focusing on what truly mattered to me, I was able to redirect my money to things that would help me achieve my long-term goals. It wasn’t easy, but it was so worth it when I finally saw my savings grow and felt more confident about my future.
Accumulation of Debt
Debt is a huge issue for many people who find themselves spending on things they don’t value. When you keep purchasing things that don’t contribute to your overall happiness or well-being, it’s easy to build up credit card debt or take out loans to fund those unnecessary purchases.
I remember a time when I maxed out my credit cards buying items I didn’t really need. The thrill of the purchase was short-lived, and I was left with interest payments and a growing mountain of debt. It was overwhelming and stressful. Once I aligned my financial behaviors with my values, I was able to pay down that debt faster, because I wasn’t spending money on fleeting desires anymore.
Inability to Save or Invest for the Future
One of the most detrimental things that can happen when your financial behaviors don’t align with your values is an inability to save or invest. Saving money requires discipline, and investing for the future takes vision and commitment. If your priorities are centered on spending impulsively or keeping up with trends, you’ll find it hard to put money aside for what really matters.
Personally, I struggled with saving for the future because I was always focused on the now. But when I took a step back and started making decisions that aligned with my values, I was able to begin saving regularly. Now, I have an emergency fund, I’m investing in my future, and I feel a lot more secure knowing that I have a financial cushion to fall back on.
Dissatisfaction with Life Choices
I’ve also found that when you’re not aligning your financial behaviors with your values, it can lead to dissatisfaction with life choices. You might find yourself asking, “Why am I doing this? What’s the point?” These feelings are common when we realize we’re not living in alignment with what truly matters to us.
For example, I used to spend money on expensive clothes and gadgets to impress people, but deep down, I wasn’t happy. It took some introspection and self-reflection for me to realize that my happiness didn’t come from material possessions. It came from spending time with my loved ones, pursuing meaningful work, and investing in experiences rather than things.
Once I started making decisions based on these values, I noticed a significant shift in my overall sense of well-being. It was no longer about impressing others or keeping up with trends. I was making financial choices that supported my happiness and life goals, not just temporary gratification.
Strained Relationships Due to Financial Conflicts
When financial behaviors don’t align with values, it can also cause strain in relationships. Money is one of the top sources of conflict in relationships, whether with a partner, family member, or friend. If you’re spending money on things that aren’t important to you or your loved ones, it can lead to misunderstandings and resentment.
For instance, I remember an argument I had with a friend when I couldn’t afford to go on a trip with them, even though I wanted to. I realized later that if I had prioritized saving and budgeting better, I could have made it happen without financial stress. Aligning my financial behaviors with my values of travel and connection with loved ones would have made a huge difference.
Living an Inauthentic Life
At the core of financial behaviors not aligning with values is the issue of living an inauthentic life. If your financial decisions are based on the expectations of others, societal pressures, or temporary desires, you’re not living authentically. You’re living based on someone else’s version of success.
This can lead to feelings of emptiness and a lack of fulfillment. I know from personal experience that constantly striving to meet external expectations only leads to burnout. When I started making financial decisions that aligned with my personal values, it was like a weight had been lifted. I was able to live authentically and make decisions that felt right for me—not for anyone else.
How to Align Your Financial Behaviors with Your Values
So, how do you get your financial behaviors in line with your values? Here are a few steps that helped me, and I believe they can help you too:
Identify your core values: Take some time to reflect on what really matters to you. Is it family? Health? Adventure? Once you know what your values are, it’s easier to make financial decisions that support them.
Set financial goals: Align your financial goals with your values. If travel is important to you, prioritize saving for trips. If you value security, focus on building an emergency fund and investing for the future.
Create a budget: A budget that reflects your values will help you track your spending and make sure your money is going toward what truly matters.
Avoid impulse spending: Before making a purchase, ask yourself if it aligns with your values. If it doesn’t, walk away.
Track your progress: Regularly review your financial behavior to ensure it’s in line with your goals and values. Celebrate your wins and course-correct when needed.
Conclusion
Financial behaviors not aligning with your values can lead to stress, debt, and dissatisfaction, among other problems. But by understanding your values and aligning your money with what truly matters, you can create a more fulfilling and financially secure life. It won’t always be easy, but the reward of living authentically and with purpose is worth it.