Day 3 of challenge: Changing spending habits
Welcome to day 3 of the challenge.
How do you feel about what your bank account revealed about you yesterday?
Have you noticed how small amounts here and there add up to large amounts at the end of the day?
Now that you know where your money is really going, and what your real budget is, we're going to focus on changing your spending habits and aligning your values to your spending.
Ayn Rand said, “It is a moral crime to give money to support ideas with which you disagree; it means: ideas which you consider wrong, false, evil."
Are you committing any moral crimes by spending money on things that don't reflect your truth and what you stand for?
Your values are the things that you stand for, the things that are important to you. These are the things that should dictate how and where you spend money.
A 2003 study by Bradi & Schwartz suggests that we often make decisions based on our values and our values impact our behaviour.
Most of us are scared of our bank accounts because we're convinced we're doing something wrong except we've never defined what doing something right with money means for us so the fear keeps getting bigger.
And we keep criticising and judging ourselves whenever we look at our bank accounts or deal with money, which destroys our relationship with money.
The difference between controlling your life by living and spending according to a budget vs living and spending according to your values
Before I started on my personal finance journey I used to obsess about controlling every aspect of my spending and then beating myself up when I couldn't.
And feeling guilty whenever I spent money.
But something interesting always happened - the more I tried to control my spending, the less I spent and decreased my expenses, the less money I had and the more frustrated I felt about money.
And I won't even tell you about the levels of guilt I experienced whenever I bought anything!
It was like a cosmic joke - cutting my expenses and fixating on living on less actually made decreased the inflow of money in my life and my savings.
I was focusing on erasing my wants and needs and not allowing myself to feel my desires and in so doing I was shrinking myself energetically and the universe was responding to my request accordingly.
But the reason isn't just spiritual, it's psychological - when we focus on control and shrinking our wants and desires (through our budgets), our subconscious mind focuses on decreasing expenses, not increasing income or savings.
But when we live according to our values we're spending money on things that matter to us and that bring us closer to the life we want.
Spending according to our values is about looking at money differently and using money as tool to make us happy.
It isn't about spending recklessly nor is it about shrinking our wants and needs, it's about expanding and using money creatively.
It's not about spending less, it's about using money differently!
This is why in the Creating Money Magic course we focus on connecting with our spirit of money, understanding how our money shadows affect us and connecting with our higher selves to start tapping into the deepest parts of our psyche to start using money creatively.
Our stories, memories around money, vows and ancestral baggage keep us prisoners to our our emotions around money, which stops us from accessing our creativity around the way we make money and use money (as you've already seen in day 1 and day 2 of the challenge).
When we align our values to our budget, it becomes easier to reach our life goals, because money affects every part of our lives.
Your values are your road map on the life you want to live and are also tied to your vision.
Understanding our core values, helps us connect with our financial vision more clearly and gives us a sense of purpose.
Using will power doesn't work, so we want to work with the emotional brain by linking spending to something it's truly emotional about and really cares about - our values.
So if you value good health and you spend all your money on fast foods, then you're not living in accordance with your value of health.
Or maybe you don't value good health.
In which case, if you want to live a life of authenticity and walk in your truth, you have 2 options:
i. change your values
ii. change the way you spend money (spending habits)
Changing what you buy (option 2) will bring you into alignment and help you reach your goal of good health.
This is why it's important to be honest about your values. Sometimes we think we value something but maybe we don't and that's okay.
So lets take the next step to loving your bank account and living an authentic life.
Step one: What do you really stand for? (15 mins)
If you want to understand what you stand for as a person, look at how you make your money and where you spend it.
Your bank account reflects your values.
i. Bring out the worksheet from yesterday (day 2) and take a look at the table in question 1
ii. Reflect on the story that your expenses are telling you about your values. If your bank account could talk what would it say is important to you?
iii. Answer question 1 - 6 in today's worksheet and as you do the worksheet see if you can get insight or clarity on your financial vision
DOWNLOAD THE ATTACHED WORKSHEET BELOW
Step two: Changing spending behaviour (24 hour exercise)
Now that you've written your values, the next step is to learn a technique that will help you change behaviour.
For the next 24 hours, use cash to make all your purchases.
Before paying for anything, no matter how small (even if it's just bubblegum) you have to focus all your attention on your breath and silently ask yourself this question:
Does this purchase align with my values?
If the answer is No, put back the item and walk away or make a different choice.
Take note of:
i. How your breath changes and how your body feels when you handle the physical manifestation of money
ii. Your emotions when handling money
iii. Your thoughts (self-talk) when you're going through the exercise
Note: You have to do this exercise in order to complete day 4 of the challenge
Step 3: Share your insights/ questions in the comments section below