Your Money Is Worth More If You Spend It On Things You Value

Spending according to your values can enrich your life

How many times have you bought something, only to put it away in a closet after using it once? Like many others, I have a lot of stuff I don’t need or want.

I often spend money on something, only to feel guilty about it because I could have saved that money. I recently came across a concept in The Art Of Non-Conformity by Chris Guillebeau that could help with that problem. Not only could I stop feeling guilty about the money I spend, but I’d get more value out of it.

The concept I’m talking about is spending money according to your values and priorities. It can be a gradual process, but eventually, you could spend money only on the things in life you value highly. Wouldn’t it be nice if everything you bought enriched your life in a significant way?

Your money has more value this way

Let’s think about this for a second. What’s money worth? The answer: It’s worth what you can get for it. Have you ever seen something on sale and thought, “I don’t really need that, but it’s such a good deal, so I’d be saving money.” That sort of saving is an illusion.

If you buy something you won’t ever use, the money you spent had no value (apart from the item's possible resale value). You might as well never have had that money at all.

Let’s say you had one hundred dollars apart from living expenses this year. That’s all you get to spend. Wouldn’t you be very careful about what you spent it on? Why should the money from your monthly or weekly salary be any different?

One hundred dollars can buy you a really expensive dinner. It can also buy you four or five fun board games which could provide countless hours of fun family time. For some people, that dinner would be an experience they’d remember for the rest of their lives. For others, the board games and family time would be worth way more. It’s all about what you value and enjoy in life.

If you spent those one hundred dollars on something you’ll throw in a closet and forget about, you’d be missing out on that experience or those hours of fun with your family. Spending according to your values and priorities increases the value of money.

Figuring out your values

So, how do you know how you should spend money? Few people go around keeping a list of their top 5 values in life in their heads. If you’re one of them, feel free to skip ahead. If not, here are some tips for figuring out your values and priorities in life.

I wrote more about this topic in this article, but here’s the short version:

Make a list of major categories in life, such as family, friends, work, spirituality, sports, art, games, etc. Think of what you value in each category and how much you value that category on a scale from one to ten.

Then, take some time to think about how much you’re acting according to those values. Rate this too on a scale from one to ten.

It might help you to use techniques such as mind-mapping or journaling for sorting out your thoughts. The more consideration you give this, the better choices you can make about your life.

Areas that scored high on what you value and low on how you’re acting according to them should probably be priorities when spending money (or time). These are the categories in which you could make the most significant impact on your life.

Your life won’t be cluttered with useless stuff

An additional benefit of only spending money on things you value highly is that your life and personal space will be less cluttered. I don’t know about you, but I have a ton of stuff lying around that I never use. It just sits there because I once bought it on a whim.

It might not seem like a big deal, but clutter like that can be distracting and affect your mental state negatively. Having only things you value around you can allow you to focus on those things and make it easier to keep your living space clean and tidy. In some cases, it could even let you get rid of so much stuff that you could downgrade into a smaller living space and save money.

Another thing to consider is that experiences often can be worth more than objects. There are only so many objects you will realistically use during a day or week. An experience, however, is something you can carry with you your whole life.

I don’t regret a single concert ticket I’ve bought, because I still remember how awesome it was to hear the music I loved played live. I remember standing in the crowd and being part of the songs and walking out afterward with barely any voice left. I also have a nice collection of guitar picks to commemorate some of the concerts I’ve experienced.

Key message

Take some time to consider your values in life. This can help you get more worth out of the money you spend. Make sure every dollar goes to something that will enrich your life in some way. Spend according to what you value and prioritize.

Not only can this declutter your life and maybe even help you save some money, but you’ll feel richer for it. What’s the point of money, after all, if not to spend it on things that’ll make you happy?

Once you’re spending money on what you value and notice that there isn’t much else you need, you can consider using it to enrich other people’s lives if you still have money left to spend. Helping a friend or donating to a charity that’ll help thousands of strangers, can be a great way to spend money that would be wasted in your own life.