Money decisions aren’t just about numbers – they’re also tied to our values, emotions, and sense of security. For some, that means that making financial decisions such as an impulse buy when you’re feeling stressed, for example, can lead to regret later.

That’s where mindful money and values-based spending come in. Instead of asking, “Can I afford this?” mindful money asks, “Does this support what matters most to me?” Research and real-life experience suggest that aligning spending with personal values can reduce financial stress and contribute to better overall well-being.

Mindful Money versus Financial Mindfulness

The terms “mindful” and “mindfulness” are used frequently in other areas of life, reminding us to be present and aware of what we are currently thinking and feeling, without judgment. Meditation is often recommended to help us cultivate mindfulness and reduce our stress, and to become more aware of how others around us are feeling and reacting.

In this sense, “financial mindfulness” involves an honest interaction with your finances, without avoidance or judgment. You become more aware of your complete financial situation, and then accept the situation without being swayed by emotions so you can be more proactive in your financial decisions.

“Value-based spending” is another way to characterize mindful money – viewing money as another tool that serves our beliefs and aligns with our values, and planning your spending accordingly.

The two are often closely intertwined. For example, if freedom and security are high on your values list, your financial mindfulness allows you to assess your debt honestly and take steps to reduce it to align with those values. If generosity or community ranks high for you, you may gain financial satisfaction from spending your money in ways that serve those priorities.

Can Values-Based Spending Improve Well-Being?

When spending aligns with values, people often report less guilt, fewer impulse purchases, and a stronger sense of control. That sense of control is key: financial stress is one of the most common sources of anxiety, and feeling intentional with money can reduce that mental load.

Importantly, values-based spending doesn’t mean spending less across the board. It means spending better. For one person, that might mean prioritizing travel or hobbies; for another, it could be building an emergency fund or paying down debt to feel more secure. When your money reflects your priorities, it tends to support – not undermine – your mental and emotional health.

Simple Ways to Practice Mindful Money

You don’t need a complete financial overhaul to get started. Small shifts can make a meaningful difference:

1. Identify your top values. Ask yourself: What truly matters to me right now? Examples might include stability, family, freedom, health, or generosity. Pick two or three to guide decisions.
2. Review spending without judgment. Look at where your money has been going over the past month or two. Notice patterns, especially expenses that don’t align with your values. Awareness alone can reduce stress and curb mindless spending.
3. Pause before purchases. Build in a short pause, such as 24 hours for non-essentials, before buying. This helps separate emotional spending from intentional spending.
4. Automate what reduces stress. Automating savings, bill payments, or debt payments removes decision fatigue and helps ensure your money is working toward your priorities consistently. If you participate in the company retirement plan, consider reviewing your contribution rate or setting up automatic increases through Fidelity’s online tools.
5. Focus on progress, not perfection. Mindful money isn’t about being flawless. It’s about gradual alignment. Even one small change, like redirecting a subscription cost into savings, can create momentum.

Other Ways to Reduce Financial Stress

Stress thrives in uncertainty. Having even a modest emergency fund, knowing where to turn for financial guidance, and talking openly about money challenges can all help reduce financial stress.

At its core, mindful money is about using your financial resources to support the life you want, not the one you feel pressured to keep up with. When spending reflects your values, money becomes less of a stressor and more of a tool for well-being.