In a seminar I listened to this week, the speaker asked, “What is the definition of value? Most people can’t define it.” I thought about that as he spoke.
I realized we use the term a lot. But we don’t all necessarily mean the same thing when we do.
But defining value in terms of spending money on what matters is really important. In particular, checking in with what you value is key.
It’s the key to ensuring your money is going towards things that truly serve you and your purpose.
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Defining value
But what is value? What is valuable?
Often we think value is getting more for our money. Buying in bulk is a good “value.” Hitting the BOGO (buy one, get one) sale is a good “value.” That’s what we typically think of.
But value is about a lot more than just getting more of something for your dollar. To spend money wisely, don’t fall in the “more for your money” trap.
When it comes to spending money, for me, value is having a high level of either usefulness (i.e. utility) or joy factor. And these are highly individual traits!
Something that is highly useful, that solves a problem that is really important to me, has a high “value” … to me.
For example, an Instant Pot is incredibly valuable to me. We don’t take time to plan food. So being able to pull off a shredded BBQ chicken from frozen chicken breasts in about 20 minutes? Game changer. But this won’t have the same value to the next person who meal plans, thaws things in advance, and enjoys (or at least doesn’t mind) tending to the cooking.
What’s more, sometimes just getting more of something for your buck is actually negative value. Like, if I participate in an event that contains a lot of valuable information and networking for me, but it also comes with a bag full of free swag. That free junk is going to make me feel guilty about (eventually) throwing it away… it’s free stuff, but it’s negative value. Because it takes up space in my house and causes me all that stress of what to do with it later (and I have landfill guilt)!
What is valuable to you?
So the question is, what is valuable to you?
What is a good use of your time, effort, and money?
If your vision for your family is to someday live on the road and write a book about your travel adventures, then it makes sense to direct your money towards investing in that future. It will be worth it to spend money on things designed for small space living. It makes sense to invest in courses on self-publishing, writing, or marketing for authors. But buying another pair of shoes for your “not-yet-on-the-road” current life when you have 10 pairs already in your closet… is not. So even if those shoes were BOGO… you must think about value to you, not just getting more for your money.
Is your calling all about hospitality and bringing people together? Then, yes, using money as a tool to create an environment in your home to serve your purpose is a well-aligned use of money.
Is your mission to start a school in an impoverished community? Using money to connect and build a network of like-minded people to contribute to bringing that vision to life makes sense.
Is your passion to build a self-sustaining homestead? Then using your money to learn and apply the methods of permaculture, energy production, and self-sufficiency should be high priorities.
What is valuable to me?
I have learned that I don’t like to spend a dime on something until I find the exact. Right. Thing. Then I’m willing to spend lots of dimes. That feels like good value to me- the best quality, or best solution I can find.
For example, I was thrilled to spend a somewhat (for a clock anyway) large amount of money for a Phillips Wake Up Light Alarm Clock. I’ve never been a morning person and pined over a sunrise type alarm clock for many years. I finally got one and it was a life changer for me, totally worth the $100 price tag- that fit into my monthly spending cap of course. 😉
Our most recent happy spending example was our queen bed Ooler. My husband sleeps hot, I’m always cold. We both have struggled with our sleeping in recent years, even after the kids stopped waking us up. I had eyed the Chili company that makes the Ooler for awhile and saw they came out with an upgraded version of their two-sided bed temperature control system, the ultimate in custom bed temp! (Note: if you decide to purchase an Ooler through my affiliate links in this post, use coupon code OOLER15 to get 15% off)
So, it was time- it was the perfect, best fix. So instead of first trying out a cooling mattress topper or other cheaper, but not quite right gadgets, I resisted for a long time buying anything at all, and then was very happy to drop about $1,000 on the ultimate fix. And it. Is. Awesome. I sleep at about 82 degrees, slowing dipping to the upper 70s in the wee hours, and then warm up toward morning, and my husband sets his at about 65. Finally temperature harmony! Magical.
I also spend pretty liberally on my sewing hobby. Fabric is not cheap. Plus, I invested $1,000 in a year-long course to improve my skills recently as well. One of my favorite things to do as a mom is to sew my kids one-of-a-kind Halloween costumes each year. And a couple years ago I made myself a dress for Christmas, with a coordinating skirt for our youngest and ties for the boys. This would be an example of high “joy factor” spending for what is valuable in my life.
Key Takeaways
In sum, exactly what you’re procuring with your money is so much more important, and specific to you, than how much of something you can get for a dollar. Don’t confuse price with value.
Keep this in mind the next time you pull out your credit card scanning over a sale email or click through for some Prime Day deals.
Instead ask whether something is highly useful to you and your highest priorities. Or if it provides major joy factor to you or your family. Make sure you know the answer before you spend. Don’t let money slip through your fingers mindlessly chasing trends, deals, and keeping up with the Jones.’
Make sure you only part with your money on things that are truly very valuable to your life. And pass on the rest. The rest is just filler.
Live your own journey and use money to chart your own path.
You may also be interested in:
- Family Goals: How To Curate Time Freedom
- Having a vision for your life: where is your money taking you?
- Tracking Savings: Your Key For Turning Dreams Into Reality
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