Using Values to Motivate Behavior

I get asked about strategies for budgeting, tips for effective money tracking or the best tools and apps to manage cash flow. While budgeting can help you focus or make decisions, are you directly motivated by the data?

My guess is no, and here’s why I think that.  

1.     Spending decisions aren’t as black and white as a spreadsheet. One person might think streaming NFL games is essential in order to function in society. Another person might consider organic produce a cost-saving preventative health measure. Yet another could insist that air-conditioning is necessary for survival in the sweltering humidity of Vermont (each of the above describes someone in my household).  

I’m writing during a time of financial security in my life, but I don’t mean to make light that football or expensive strawberries are “essential”. Yes, deciphering between needs and wants is one setback to the budgeting process; and, for those working toward financial security, a budget may not be compatible without broader policy solutions in place.

2.     Budget decisions can be skewed with a moral lens, like indulging or restricting as a character strength or weakness.  You’re not good or bad based on the results of a budget test, and who’s to decide whether you pass or fail anyway. Beating yourself up about overspending in one category is not motivational behavior that will spur you take hold of your financial reins.

3.     There is a restrictive nature to budgeting, perhaps because we implement them when we perceive trouble. While it’s worthwhile to look back at spending patterns as well as plan for the future, you can’t shrink your way to success.

There is an expectation that the act of creating and updating a budget will result in progress toward financial goals. While I strongly believe that focusing on your money is time very well-spent for any human that relies on it, I also expect the majority of personal spending transactions are made without consulting a budget.  

Most people that work with me have learned that I don’t endorse detailed monthly tracking (unless it’s warranted by specific conditions) as a means to becoming your wildly successful self.   

So, what do I believe motivates financial behavior?

This quote came across my screen and it strikes me as one appropriate response. “‘Values’ are your heart’s deepest desires for how you want to behave as a human being.” ~Russ Harris

Let’s explore the use of values as a source of motivation and direction for the things you wish to achieve. Maybe you value physical health but lack drive to get on your bike. Use your values to get you moving when excuses creep in, like low energy, limited time, or too many choices. A great way to double check if you are making the right choice is to ask yourself, will I regret this? If it’s value-driven, the answer will be no.

Apply this to something on your financial task list that you’ve been procrastinating. Maybe it’s creating and interpreting a financial report for your business or researching loan options for a purchase. Let’s take the example of purchasing a life insurance policy, and let’s assume you haven’t started the process.

Discover

Think about your values and put them in writing (use this list if you need help). This does not need to happen overnight, nor is your list static when you write it down. It will help with your awareness as you begin to focus on your values as a catalyst for behavior change. If you’ve gone through the exercise of articulating your “why,” you have a head start here.

Values that might tie to pursuing a life insurance policy are responsibility, peace or stability.

Commit

Pursue what’s important to you in the context of a meaningful life. Other offers will compete for your precious time and attention, like the lure of checking off a task that comes easily; direct your engagement toward your values list. This is where you align your behavior with the person you want to be.

Tasks in this scenario include seeking advice from a trusted professional, blocking time on your calendar, and discussing your ideas with a loved one. The commitment to finalizing an insurance policy could bring your plans into alignment with your values.

Reward

If satisfaction and riddance of a financial task aren’t enough incentive, create a reward system or ritual to celebrate milestones. Share the news, buy something special or jump in a cold lake – anything to celebrate that your beneficiary didn’t cash in that life policy today.