You look for a source of income so that you can have money to spend for your needs and wants. It can always help if you are always aware of the value of everything that you buy and ensure that it gives you its full utility.
Value awareness is what value based spending is all about. It is highly individualistic and what is of value to one person may not be so for the other.
Books may be necessary for one person but not for another. A person can be fond of pets and will not grudge any money spent on them. Others may think this a waste.
You can decide on which of your expenses are value based by a process of elimination so that you agree on the things that give you the most value.
You can then budget for them and reduce your spending on all items whose value to you is limited. You can even base your spending on individual financial goals that you have and examine each item of expenditure to decide on its necessity and the effect that it can have on your goals.
Value Based Spending Can Be A Debt Management Discipline
This form of financial discipline is a way to manage your debt situation and never let it get out of hand.
Value based spending is a way to attain financial freedom and wealth. Make it a habit of considering your need for anything that you want to buy.
Questions You May Ask Before Making The Purchase
Is it necessary?
Can I manage without it?
Will the item I am thinking of buying giving me the use that I expect from it?
Is it in any way going to improve my way of living?
Truthful answers to these questions can set you on the right path and ensuring that every expenditure that you make has been one of necessity and can give you the satisfaction that you want.
There Is No Reason To Be A Miser Whose Life Is Unhappy
Just make sure that your attitude does not turn you into a miser. You still need to live a lifestyle that is suited to you, and one that you can afford.
Spend wisely and you will find your life that much happier.
The following is an article from Garrett Gunderson that was published on Forbes and discusses the use of Value-Based Spending for an entrepreneur.
Ive seen some strange things lately. People are put on a pedestal for obsessing over limiting their purchases. We applaud people who carry around paper envelopes full of cash for each type of expensefood, entertainment, auto, etc. News sites glorify budgeters with headlines like, Look at this perfect couples strict $80,000 budget. Heres my question: why are we glorifying the scarcity-mindset?.Read More..
Garrett Gunderson is the founder and Chief Wealth Architect of WealthFactory.com, and a financial advocate for entrepreneurs. He is also a Frobes.com contributor.
Below is a video about Garrett Gundersons company Wealth Factory.
[embedded content]How Important Is Goal Setting
If the objective of going in for value based spending is simply to make you rich, this is better achieved if you set specific targets to reach where you want.
These goals must be achievable with your current source of income and level of spending while it still allows you to live comfortably.
Understand that every dollar you spend has a definite value, and you must get its full worth, that is exactly what Value Based Spending is about.
Other Resources On Value Based Spending