What Does It Mean to Be Intentional With Spending?

1. Identify Your Financial Goals

Do you want to stop living pay cheque to pay cheque? Do you want to be debt-free by 40? Do you want to stop renting and become a homeowner? When you have a clear goal, chances are that you’ll think twice before mindlessly spending your money.

Sit down with a pen and paper and visualize what your life will look like in one, five, and 10 years. Who are you? Where do you live? What kind of lifestyle do you want to have?

You may realize you want a cozy home for your kids to grow up in, or you want to go back to school and change careers. Whichever path you want to take, you’ll need some financial goals to get you there.

For each financial goal, figure out how much money you’ll need and what date you’ll need it by. Your goals will shape the direction you’re moving in.

How to Set SMART Financial Goals

2. Define Your Values

A new wardrobe and extravagant dinners out, an exotic trip, a world-class gym with spin classes and saunas – in a world of mass consumption where bigger is better, we’re inundated with options to spend our money. A budget will allow you to have much of what you want, there’s no way to ever have everything you want. So, how do you decide what you want to spend your money on?

Everyone will have a different set of things they cherish in their lives, so your next step is to determine what you want to prioritize.

Ask yourself:

• What do I truly love to do?
• What do I want more of?
• What do I want to be known for?

Some people value travel and experiences over possessions, while others may want convenience, such as a meal delivery service or driving to work instead of taking the bus. Others want to improve their health with yoga classes or are passionate about their hobbies, like gardening or trying new restaurants.

Outline what you value, what enriches your life, what you can’t live without – these areas should be where you put your discretionary spending.

Keep your values close by – every time you’re tempted to spend money on something random, remind yourself that unplanned purchases take you further away from your goals and what you love to do.

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