Value-Based Spending: How to Make Your Money Fuel What Actually Matters

In my experience as a Mentor, I often hear people say they get to the end of the month and wonder where all their money went. They feel like cash slips through their fingers in between paychecks. That said, if this is a challenge that comes up for you in your own financial journey, you're definitely not alone. In 2024, 37% of Americans increased their monthly spending while only 32% saw their income rise. More people are spending their paychecks faster than money is coming in.

I’m here to tell you that you can flip the script on this scenario. The path forward is spending more mindfully. It’s not necessarily about deprivation or restrictive budgeting. Practice spending in a way that aligns with whatever is most important to you in life. Ultimately a mentality shift could be just the tool you need to get your spending on track.

The real problem might not be your paycheck

What does the data say? The average American household spends $77,280 annually (that breaks down to $6,440 every single month). Housing, transportation, food, and insurance are the big budget busters. And the list goes on. With more than half of Americans not having enough savings to cover a $1,000 emergency expense, the numbers can feel scary and overwhelming. Before you spiral, take a deep breath, and let’s take it step by step…

Stop and examine your own "I spent how much on what?" freak-out moments. Do you feel like you make a decent paycheck but can’t seem to get ahead? The disconnect between what you might say matters to you and where your money actually goes is something that could be keeping you stuck. And with U.S. credit card debt surpassing $1 trillion in 2023, it's clear that many people feel that same anxiety and pressure.

Now, I want you to imagine that I’m saying this in my most supportive, fatherly voice—Please don’t be hard on yourself. It doesn’t matter what brought you here. Whether you're navigating your first “real” job or you're struggling to make it to the end of the month without dipping into savings, you're taking the first step by simply bringing awareness to your current financial position and spending habits. Money mindfulness is a muscle that takes time to exercise and strengthen. I’m proud of you for just showing up!

Okay. Let’s continue…

What if your budget could actually make you happier?

Traditional budgets tend to feel restrictive to a lot of people. The idea of constant cutting and sacrificing in ways that make you stop enjoying life until some distant future when you've "made it" makes it easy to fall off the wagon and give up. Luckily, there is another way, and it starts with a very simple question: What do you value?

Value-based spending means aligning your financial choices with what truly matters to you. Maybe you value:

• Security: knowing you're covered if life throws you an inevitable curveball

• Family: creating memories with the people you love

• Growth: investing in education, skills, or experiences

• Freedom: having choices instead of feeling like you’re drowning in bills

• Health: taking care of yourself physically and mentally

When you get clear on your values, your mentality shifts. Spending based on what matters to you creates a sense of integrity. When your behavior and your values align, you’ll feel more in control. Saying no to an impulse purchase at Target no longer feels like a deprivation. The FOMO vanishes and the dopamine chase becomes less exciting when you remember you’re spending your money on something more important. Like I said, it’s a mentality shift more than anything! Think of it like financial tai chi for your brain.

Your money is fuel for success, not a dead end

I like to tell my clients to think of their money as fuel. Every dollar is energy that can power something in your life. Want to pay off lingering credit card debt? Build an emergency fund so you can finally rest easy at night? Save for a down payment on a home? Take your family on that dream Disney vacation?

All of those goals need fuel. And when you're mindful about where that fuel goes—when you're spending less on things that don't light you up—you suddenly have more resources for the things that do.

What I love most about this approach is that it reduces financial stress and increases life satisfaction. You're not just managing money better, you're building a life that feels more oriented with who you are, or who you want to be, as a person.

How to start spending your money (instead of letting it spend itself)

Okay, the information I’ve already shared with you is great and all, but let’s talk about how to put this in action.

Get honest about where you are right now

First, I want you to pull up your bank statements from the last few months. You don’ t need to judge what you see, just observe. Where is your money actually going? According to Experian, many people struggle to stick to budgets simply because they don't track their spending. You can't change what you don't acknowledge.

Pro tip: I highly recommend a digital expense tracker. Fruition offers a place for you to aggregate all of your accounts. Folio is an all-in-one hub that gives you a bird’s-eye view of your finances. You can link all of your financial accounts to get insights into your finances in real-time; it’s super easy!

Identify your core values

What matters most to you? Not what you think should matter, not what matters to your parents or your friends: what matters to you? Try writing down your top 3-5 values and think about what activities, investments, or experiences bring real fulfillment and joy into your life.

Look for the mismatches

Now it’s time to compare your spending to your values. Are you spending $200 a month on streaming services you barely use while saying you value experiences? Dropping serious cash on eating out when you claim to value saving for a home?

Again, no judgment. These disconnects are just information about where you can realign and refocus.

Start small

Being overly restrictive can backfire and lead to overspending, so don't try to overhaul everything overnight. Pick one area where your spending doesn't match your values and try making one change this week. Maybe it's meal prepping on Sundays to cut down on takeout. Maybe it's canceling that subscription you forgot you had. Small habits produce big changes over time.

Give yourself permission to enjoy life

Value-based spending isn't about living like a monk. It's about making intentional choices so each expense contributes to meaningful goals. If fancy coffee genuinely brings you joy and aligns with your values, great! Keep it. The goal is to spend on what matters and cut what doesn't, not to eliminate all pleasure from your budget.

Review and adjust regularly

Life is constantly changing, and your values will inevitably shift. Major life events, like new jobs or growing your family, mean your budget will evolve too. A good practice is to check in with yourself monthly or quarterly and ask yourself, “is my spending still aligned with what’s important to me?”

The path forward starts with you

Here's the truth, friends: you don't need to be perfect with money to build the life you want. You just need to be intentional…

When your spending aligns with your values, you reduce impulse spending and find it easier to save for important goals. More importantly, every dollar you spend becomes a vote for the kind of life you're building. That's powerful.

You're not just dreaming of financial security. You're building it, one conscious choice at a time.

Ready to transform how you think about spending? The first step is always the hardest, but you’re ready to take an honest look at where your money is going. Once you do, everything else gets easier. Folio gives you a birds-eye view of your finances by connecting all of your accounts in one place. You can also connect with a Fruition Mentor in a 20-minute or 50-minute session to discuss the next steps you can take on the road to financial freedom.