How you spend your money determines the type of world you want to live in.  Some say it’s how you spend your time that determines your priority.  It can also be true with your money.  In addition, your finances can have an impact on your overall health and well-being.

Let me ask you this to start.  Let’s play a little “This or That”:

Which are you when it comes to your finances?

• Spend It or Invest/Save
• Plan or Fly by the Seat of Your Pants
• Spend Within Your Means or Spend Outside of Your Limits (and accrue credit card debt/loan payments)

I can safely say there are pros and cons to all the above.  Some may say that “flying by the seat of your pants” is just more fun.  Or that “life is too short, spend all the money”.  Or even “Oh, what’s the big deal if I can’t afford it now, I can put it on a credit card and pay it off later.”  Which are all true statements….but this approach tends to build up and cause added stress in your life. 

There are typically 4 types of spending:

1. Essential spending: covers the things you need to live and function – rent or a mortgage, utilities, groceries, transportation, healthcare, etc. 
2. Optional spending: where you have more freedom and includes non-essential purchases like dining out, entertainment, hobbies, and luxury items. These tend to be more wants vs. needs.
3. Obligatory spending: payments you’re committed to – loans, insurance premiums, and taxes. They may not be essentials for daily living, but they’re still obligations.
4. Emergency spending: covers unexpected expenses such as car repairs, home maintenance issues, or medical emergencies.

Mindful spending can make a big difference in all of these.  To take a hard look at what falls where, how much, etc. will only help you be as financially healthy as possible.  You typically have expenses that fall into each of these types and it’s important to be prepared.  For example, having a “financial cushion” or an emergency fund to cover anything that may unexpectantly arise will allow you to not impact your other spending areas. In turn, creating a healthier mental state and outlook in other areas of life.

Mindful spending in your daily life can come with challenges to start.  To help, try not to think of it as “restricting” your spending, but as making smarter choices that can lead to a more fulfilling and stress-free life.

Here are some practical tips to try to make it easier to take a mindful approach to financial decisions:

• Track your spending habits – keep track of how much goes to which things (weekly, monthly, etc).  Notice trends or patterns to give you an understanding of where your money’s going. This can help identify areas to make changes. Then try to make any changes accordingly. No matter how small.
• Pause before purchasing – Before every purchase, ask yourself whether the transaction is necessary – does it align with your goals? Will it bring you lasting satisfaction? This pause and these questions can be a powerful tool against impulse buying.
• Practice delayed gratification – put items you want to buy on a wish list and wait a few days or weeks before purchasing. This can even be putting something “cart worthy” in your shopping cart and then, later, revisiting it to see if it is worth it or not. This delay can help you figure out if it’s something you truly need or just a fleeting desire.
• Reflect on the urge to spend money – learn to recognize what drives your spending. Is it emotions, certain environments, or specific people? What makes you want to spend money? Learning to understand these “triggers” can help you avoid unnecessary spending and find healthier ways to cope with the causes of impulse buying or overspending.
• Use cash instead of cards (whenever possible) – credit card purchasing can get a “away” from you quickly.  In turn, you tend to forget it’s essentially a 24% interest rate loan that can easily add up (especially if you continue to do more and more and the payments you’re making get less and less). Using cash can make spending feel more tangible and real. Handing over physical money can help you become more aware of the amount you’re spending than when you use credit or debit cards.
• Set aside money for personal enjoyment – allocate a portion of your budget for guilt-free spending on things that bring you joy. Setting aside money for experiences, items, or other indulgences that bring you joy are more fulfilling than frivolous spending. 
• Create a conscious spending plan – instead of giving yourself a strict budget, make a spending plan that aligns with your values and goals. Plan to use your money in a way that supports your long-term objectives and personal fulfillment. Building consistency in your spending habits takes time and effort to implement and achieve, but it is possible.
• Understand your financial goals – be clear about your short-term and long-term financial goals to guide your spending decisions and help you prioritize your expenses. This also helps identify areas to make changes.
• Reflect on your purchases – regularly review your purchases. Ask yourself if each item was worth it, and what you learned.  This will help you with each spending decision and improve your future financial choices. Try to practice self-compassion as you reflect on your purchases. This isn’t about judging or shaming yourself, but better understanding your motives and patterns.  
• Educate yourself about personal finance – the more you understand about personal finance, the better equipped you’ll be to make wise spending decisions.

At its core, financial mindfulness simply means becoming aware of and intentional with your money. This, in turn, reduces stress, cultivates awareness, gives financial confidence, and helps create better decision making.  It can also better prepare you for and support life goals such as saving for education or retirement, building a home, buying a much-needed car, etc.

Being financially healthy can help clear any mental burdens around finances and create a more overall secure future.

Each week we try to correlate these Blog Posts with our weekly newsletter.  In each you will also get a helpful Mindful Minute – this week, “Organize Your Space.” If you haven’t yet, enter your first name, email and click “yes, please” in the black box within the main Blog Page of this website to have these drop into your inbox each week. 

For additional tips on mindful living and topics like this, follow me @livinghealthyin5fields on social media.