Did Your Spending in 2019 Match Your Personal Values?
Earlier this week, I prepared a report on all my 2019 expenses, divided by category. While I am confident that I will have a few more expenses before the end of the year, I was still able to get a pretty accurate idea of where my money went this year – and whether I have allocated my money according to my values.
For example: I like to think of myself as a supporter of creative people and art organizations, but when I piled up all the money I put into charitable donations, Patreon subscriptions, and tickets to local art events and performances, it came out as just $ 1,371 ,eighteen. That’s slightly more than the $ 1,092.56 I spent on clothes, which suggests that I value the bounce back about the same as buying new clothes .
When you run your own numbers, you are likely to discover some surprises of your own. Maybe you spent a lot more on dining out than you thought, for example, or maybe you spent significantly less on restaurants, takeaways, and work lunches than you thought – which means you might you don’t have to spend the next year worrying about every latte you consume. purchase.
In my case, I was worried that I was spending too much money on rideshare – until my expense report showed that I only spent $ 488.26 on personal (non-commercial) transportation, which includes Lyft, Uber, taxis and passes. bus. I am absolutely satisfied with this number, and it is still much cheaper than buying a car.
This type of year-end analysis not only shows you where your money has gone, but also helps you decide where you might spend your money in the future. I would like to spend a little more on donations in 2020, and I would also like to spend more on vacations . I could probably spend less on toiletries and home furnishings , which tend to trigger the most impulsive purchases (I have more soap, shampoos, conditioners, and shower products than anyone else needs, let me tell you).
When you start planning your 2020 budget, use the 2019 summary of expenses to answer the following questions:
- Are you satisfied with the amount of money you spent in each category? Are your spending in line with your values?
- Do you think you’ve spent too much money on a category or bought a bunch of things that you don’t really need / don’t use?
- Do you feel you haven’t spent enough on any category or avoided the purchases you need / want?
- Do you want to knowingly spend more or less in certain categories in the next year?
- If you want to spend more, where does the money come from? Will you pull from another category? Increase your earnings? Reduce the amount of money you invest in savings?
- If you want to spend less, what will you do with the money you don’t plan to spend? Should I put it in a different category? Invest in savings?
- Does your budget have enough wiggle room for contingencies? Have you created repayment funds for expenses like car repairs and holiday gifts? Are you saving enough money for urgent savings, retirement, debt repayment, down payments, and other long-term financial goals?
Yes, I know that any spending plan you create in January is likely to be reversed by the end of February, but it’s still worth taking the time to ask yourself these questions and create a budget that has room for both your personal values and for “real life.”
Because the next time you walk past a coffee shop, open an email from your favorite clothing seller, or stop in front of a handmade display case, you can remind yourself that you really want to spend money on these things – or that you would rather invest in something that appreciate more.