Intentional spending and saving refers to the deliberate and thoughtful approach towards managing one's finances. It involves making conscious decisions about where to allocate money and how to prioritize expenses and savings goals.
Intentional spending
Intentional spending involves understanding and prioritizing one's needs and wants, and making mindful choices when it comes to purchasing goods and services.
Think back over the last five years. What purchases brought you the most happiness? It could be really good food and drink enjoyed with friends. It could be the latest technology. It could be travel, or artistic pursuits, or ethically sourced high fashion, or pursuing multiple hobbies. Regardless of what you love most in life, its cost will need to be fitted into your disposable money after saving. This may mean your intentional spending more resembles short-term saving for bigger ticket items. But that’s OK! If you are confident and passionate about your intentional spending, it becomes easier to save up to spend.
You might want a simple map to know when you’re ready to make intentional purchases. If you meet the following conditions, you’re probably in a good place to spend instead of save:
Now, those last three points may take a while to achieve or achieve regularly. That doesn’t mean you can’t spend money outside of those goals during that time. It does mean you should limit spending until you’re there.
Intentional saving
Intentional saving involves setting clear financial goals and actively working towards achieving them.
To become an intentional saver who can still enjoy life, take each saving goal and decide:
This will help you avoid saving just for saving’s sake. If your savings goals are being met for retirement, an emergency fund, a down payment on the house or new car, etc., you should feel confident in relaxing the reins on your saving.
Intentional spending and saving allows for more conscious decision-making in terms of managing money, and ultimately leads to a more secure and fulfilling financial future.Hopefully that makes pursuing financial health less scary and more about getting more of what you love in life!