GLOSSARY · BUDGETING, SPENDING & SAVING

Values-based spending

A way of planning spending that starts from what a person values most, spends generously on those few things, and cuts hard on spending that serves none of them. It replaces even cuts across every category with deliberate choices about where money goes. Research on spending and wellbeing suggests purchases add more to life satisfaction when they fit the person making them.

Also called: intentional spending, conscious spending, spending by your values

COMPUTE IT WITH YOUR NUMBERS

Household spending vs peers →Is my spending on housing/transport/food normal for my income and household?Subscription cost audit →How much am I really paying for subscriptions per year?

LEARN IT PROPERLY

CHAPTER · LIFESTYLE DESIGN & INTENTIONAL BUDGETING · DEEP DIVESpending by Your Values CHAPTER · LIFESTYLE DESIGN & INTENTIONAL BUDGETING · DEEP DIVECutting Ruthlessly, Spending Lavishly

SOURCES

Money Buys Happiness When Spending Fits Our Personality. Matz, Gladstone & Stillwell, Psychological Science, 2016.
If Money Doesn't Make You Happy, Then You Probably Aren't Spending It Right. Dunn, Gilbert & Wilson, Journal of Consumer Psychology, 2011.

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