What Is Intentional Spending And How It Makes You Wealthier
Do you know it’s easier than you think to build wealth? All you have to do is spend more than you earn and invest the rest. The real question is how to put this philosophy into practice?
The first place to look is your personal spending because for most people, this area is out of control.
The clues are there! Higher than expected credit card bills that leave financial hangovers. Money spent on things you throw to the back of the closet. Spending that varies wildly from month to month. But don’t feel guilt or embarrassment. Instead, blame our easy-come, easy-go credit culture that’s made spending effortless. Blame the influencer ‘void’ you’re persuaded to fill with a big home, expensive vacations, and ‘essentials’ that are luxuries.
Truth is you’re up against a culture that wants to trap you with debt and mortgage repayments and keep you intoxicated by possessions.
But is that what you want?
Chances are, you desire things your financial position struggles to fund. You want to travel, you’re keen to live in a new city, you want a home by the beach, but as things stand you can’t do any of these.
But life needn’t feel this limited.
With a different approach, you’ll discover a heap of surplus cash you can spend on the things that make you happy. And the key to this future is intentional spending.
So keep reading. I’ll show you how this principle changes not only your finances – but also your life.
What is intentional spending?
Intentional spending is spending money consciously. Instead of falling in line with society’s expectations, you spend your money, your way.
With intentional spending, you know where every dollar goes, and you use positive constraints to stay within your means. You don’t get lumped with unexpected bills or financial hangovers and the ‘must-haves’ you forgot in a week don’t create clutter.
Money no longer controls you – instead, you control your money. You feel more connected to your dollars, and this transforms your wealth because:
- You reduce your personal spending because you buy consciously
- You only buy things that align with your values creating surplus cash
- You don’t make spontaneous decisions that harm your future self
- You waste less and free up money to fund things you can’t afford currently
In turn, you create a more positive, intentional relationship with money that makes your life more abundant, happy, and free.
Four-Steps to Intentional Spending
- Decide where you want to spend your money
When you understand how the ‘void’ steals your wealth and entices you to spend needlessly, you can take back control.
You can get clear on what you want, what you value, and how you want to feel.
Answer these questions and create a benchmark to assess spending. If a purchase aligns with your values, go for it, but if it fills the ‘void’, say no. Then use the cash you free up to do more of the things you can’t currently afford. For example, if you want to travel, build your holiday fund. If you want a house by the beach, invest any surplus in an investment fund.
Remember, a more conscious present creates a wealthier future.
- Create a monthly budget
Don’t leave things to chance. Instead, allocate your money into specific buckets. For example, set a budget for personal spending, food, insurances etc. Automate payments to move your money into these ringfenced containers to ensure your plan happens.
Leverage these positive constraints, and you’ll avoid financial hangovers and create a position where you can fund the life you want.
- Cut up your credit card and spend money in real-time
One of the best things you can do for your wealth is to cut up your credit card and use a debit card or cash account to manage your monthly spending. I guarantee your credit card is stealing your wealth.
Credit cards don’t encourage intentional spending. Instead, they remove any friction and entice you to spend spontaneously and exceed your means.
The second you spend real cash, you’re forced to feel more connected to your money – and that in itself makes you more intentional.
- Have fun now and save for later
Intentional spending isn’t about being stingy and cutting back on things that make you happy.
We want you to spend money and get wealthy – in a conscious way.
That means using money to feel happy now while sowing seeds for a wealthier future. So invest some of the cash you free up. Even $100 a month will compound and grow exponentially.
Step into an intentional relationship with your money
Intentional spending is a catalyst for more happiness, freedom, and abundance. It’s a practice and mindset that builds your ‘netwealth’ by guiding you to spend and invest money consciously: less waste, higher returns, more wealth.
Intentional spending may be a simple concept to grasp, but it’s hard to implement. It’s not easy to change behaviours, but that’s what’s required to make this principle work.
So if you know you’ll struggle to quit your credit card and you need a hand to figure out your values, let us help. Book your Intentional Living Strategy call and get yourself on the right wealth path today. It’s free.
Disclaimer: all information contained within this article is of a general nature. Do not rely upon it when making financial decisions. Please consult a professional financial advisor or planner (like us!) before acting.