“When your values are clear to you, making decisions becomes easier.”
-Roy Disney

Ever wonder why we experience buyer’s remorse after making a significant expenditure? One major reason is because on some level, we doubt that our purchase is truly aligned with our values. Some of us have never delved deeply into identifying what about money is important to us. Once we clearly understand our values, making financial and other decisions becomes easier.

Five Steps to Putting your Money Where Your Heart Is

#1 Identify the things that you value most in life
Writing down what is important to you will help you discover the things that you value most in life, most of which cannot be purchased. However, money can be counted and can be one measure of your success that spills over to other parts of your life.

#2 Surround yourself with people who support your values
The easiest way to fall short of your goals—financial and otherwise—is by spending too much time with people who are not supportive of what you stand for. If personal financial success is important to you, seek out people who have similar goals.

#3 Have a summary of everything you own and owe on one page
Maintaining a personal balance sheet is critical. This is how you know what direction you are moving in. Companies have them and so should you! Keep an inventory of all your savings, investments, and debt with their corresponding account numbers. It could be a protected spreadsheet on your personal computer or a report from your financial advisor. Whatever the form, keep it in one place and update it periodically. Each asset should have a corresponding financial goal named right beside of it. Your money will take on new meaning once you determine what each bucket is for.

#4 Track your spending
Next to each of your expenditures, ask yourself a critical question, is this outlay bringing me closer to experiencing what I value most in life? Remember, no financial transaction is neutral so whatever is not working for you is working against you. Discontinue spending money in areas that do not support your values.

#5 Avoid borrowing money to purchase things that automatically decline in value
A new car is a common purchase that declines in value the minute that it leaves the dealership. If you must finance this type of purchase, pay close attention to the fine print and negotiate for the lowest rate.

Five Steps to Keeping Your Money Where Your Heart Is

#1 Make time for self reflection
Women somehow find time to care for everyone else, but we must make our own well being a priority. Whether your annual personal retreat is a getaway to a luxurious spa or simply locking yourself in your room with some inspirational books, schedule that down time to periodically reflect on how you are doing, and include your finances in that reflection. Ask yourself, if you only had 24 more hours to live, what would be your regrets? Then devise a plan to close that gap.

#2 Live beneath your means
My mother always taught me to live within my means. This was a good lesson. An even better lesson might have been to live beneath my means. Once values clarity exists, your expenses will no longer be a function of your earnings. Instead, your expenditures become a function of your values. When your heart is in the right place, you can always find ways to do more with less.

#3 Create accountability around your finances
Whenever you hit a major milestone, reward yourself for a job well down. Conversely, if you fall short of sticking to your budget or reaching your financial goals, impose some type of consequence, preferably one that will still support your goal. For example, if you were unable to accumulate a vacation fund, you might pack a brown bag lunch and accumulate the money that you would have otherwise spent toward your vacation fund.

#4 Educate yourself
A fool and her money will eventually part. You do not have to become a financial expert but you do need to stay abreast of your financial progress and be aware of what financial vehicles are best suited for your personal goals. Having a good mentor is always an asset.

#5 Delegate
Do the things that only you can do like becoming a better you in the area of your career, your physical health, your relationship health or you inner health. Delegate other things to trustworthy and ethical specialists who will have your best interest at heart.

Follow these simple steps and you will certainly experience a greater sense of accomplishment. Money and time will be more meaningful and more fulfilling. Good luck on your journey to personal financial success!

Kim Bourne, CPA, CFP, EA, a lifelong New Yorker, was born and raised in Brooklyn, and graduated from Pace University. She is the owner of Playfair Planning Services where she and her team help successful entrepreneurs and professionals make smart choices about money.