Values Based Spending: How to Enjoy Your Money Now and in the Future

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Why is the myth that good money management means never spending wrong?

Frances Cook 0:00
Hey team, it's Frances. One of the big money myths I don't like is the idea of being good with your money means you just never spend it. Especially if you're putting together a budget. That a good budget means you live like a monk, never do anything, and build up a big stack of cash that sits in the bank forever. And it's not just me that feels this way. James Blair, a wealth director at Lighthouse Financial, came on the podcast a while ago to talk about values-based spending. which is the secret to organizing your money so that you're enjoying life both now and in the future. If you want to check out his full episode, it's from the 22nd of June, 2025. But until then, check out this great highlight of his insights to values-based spending.
Frances Cook 0:46
You mentioned earlier, and you've just sort of hinted at it again, about telling clients to spend more. I mean, A, look at your budget and actually be realistic. Let's build a budget that is not just who you want to be, but who you actually are, which I think is one thing. I still struggle with that when I'm looking at my numbers, and let's actually be realistic here. But also this idea of spend more if it's something that you actually want. What are the guardrails on that? Because, of course, there are limits to this idea of values-based spending, right?
James Blair 1:18
There's a world
Frances Cook 1:19
where you can use it to justify anything. You say, I want a Ferrari. It'll make me happy. Give it to me.
James Blair 1:25
Well, a Ferrari would make you happy, right?
Frances Cook 1:28
Yeah, for at least a week.
James Blair 1:29
It would be quite fun, I'm sure.
Frances Cook 1:30
Yeah, that's right. How do you genuinely assess what is truly going to bring value to my life? What is actually a good purchase to make here?
James Blair 1:41
So it's looking at your goals in totality. So the idea is what do you want to achieve, not just in the short term, but the other goals. So what we find is that most people's goals tend to fall in the same kind of areas. So what are the short term things that are important to me in terms of my life right now?

How does values‑based spending help you enjoy money now and later?

James Blair 2:01
Where do I want to live? So that might be I'm planning to upgrade my home. I want to renovate. I'm going to downsize. I want to rent long term, whatever it might be. When do I want to be financially free? So, financially free. Over my time as a financial advisor, at the start, retirement was a word that was used a lot and people still retire at 65. Now, people don't really want to retire because we're all living longer. People want options. They don't want to be tied to the situation. And then the other category is around the kids. So, what do we want to be able to do for the kids in the future if we've got kids? So, Some people want to be able to help with first cars, schooling, university, first homes, whatever it might be.
James Blair 2:43
And within all of those goals, you write them down, you go, when do you want them to happen? How much will it cost? And then you kind of go from our perspective, like with a financial advisor, start to project all these things out and go, can we do them all? A lot of the time, the answer is yes. depending on the person's situation. But let's say the answer is no, that you can't do everything. Then financial planning is essentially like a big game of what would you rather. Would you rather spend more money? Do you want to extend the retirement age and maintain your lifestyle? Do you actually not like the kids that much and you want to scrap them? Do you want to spend a little bit less money on travel so you can retire earlier?
James Blair 3:21
Is the renovation on the home actually that important? And then you have to prioritize all of these different goals. That's actually how, opposed to just buying Ferraris, you kind of have to look at it in totality and go, can I achieve all of my goals? Now, in a scenario where somebody can achieve all of their goals, I'm a big fan. Have you heard of the book and the concept, Die With Zero?
Frances Cook 3:46
Yes, I have, but explain it for us again because some people won't have and it's a great one. I do recommend for those who like a little read or even an audio book, I'm pretty sure it's on audio book. It's a great one, but give us the ported history of it.

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