Are you often tempted to make impulsive purchases, only to regret them later? If so, you might be struggling with intentional spending, which could lead to more debt and less control over your finances. In fact, about one in six Canadians admit that their monthly spending exceeds their income, and one in four end up borrowing money to cover basic expenses like groceries. However, there’s a way to break this cycle: intentional spending. Here’s how you can adopt this mindful approach to budgeting and spending to regain control of your financial future.

What Is Intentional Spending?

Intentional spending is about being thoughtful and purposeful with your money. It involves aligning your income and expenses with your core values and long-term goals. With intentional spending, every dollar serves a clear purpose, whether it’s saving for a home, paying off debt, or enjoying meaningful experiences. This approach contrasts with mindless spending, where you may be swayed by sales, peer pressure, or emotional impulses. Instead, it’s about taking control of your finances and spending in a way that supports what truly matters to you.

Here’s how you can start living more intentionally with your money.

1. Set Clear Financial Goals

Start by identifying your financial goals. Do you want to be debt-free by a certain age? Are you aiming to buy a home or save for a vacation? Having clear goals in mind makes it easier to make spending decisions that align with your future aspirations. Take some time to write down your goals for the next year, five years, and even ten years. Visualize your future—where do you want to be, and what steps will help you get there?

For each goal, determine how much money you’ll need and set a deadline to achieve it. This clarity will guide your spending and help you stay on track.

2. Identify What Matters Most to You

Living in a world of constant consumerism, it can be easy to get distracted by things we don’t really need. Whether it’s the latest gadgets, designer clothes, or spontaneous dinners out, there’s always something vying for your attention and wallet. To avoid falling into these traps, take a step back and reflect on your values. What truly enriches your life?

Ask yourself:

• What do I truly love doing?
• What do I want more of in my life?
• What legacy do I want to create?

Some people prioritize experiences like travel or dining out, while others might focus on their health, hobbies, or family. Define what matters most to you, and allocate your discretionary spending towards those areas. This will help you stay true to your values and avoid spending on things that don’t contribute to your happiness.

3. Create and Stick to a Budget

A budget is the foundation of intentional spending. Once you’ve identified your goals and values, it’s time to track your spending. Start by monitoring your income and expenses to see where your money is going. How much of your income is dedicated to fixed expenses like rent, bills, and loan payments? And how much is left for your goals and priorities?

Track your spending for a few weeks and look for patterns. Are there areas where you’re overspending, such as on eating out or impulse buys? Use this information to create a budget that reflects your goals and values. A budget isn’t about restricting yourself; it’s about being strategic with your money and ensuring that it goes toward what truly matters to you.

4. Stay Committed to Your Goals

It’s easy to get distracted when your friends invite you out for an expensive dinner or when you see a sale on something you don’t really need. Learning to say no is a key part of intentional spending. If an expense doesn’t align with your goals or values, it’s okay to decline.

Keep your goals and values front and center. Set reminders for yourself—perhaps by placing a picture of the vacation you’re saving for on your phone or a note with your debt-free date on your credit card. These visual cues will help you stay focused and resist the temptation of impulse purchases.

5. Practice Mindfulness in Your Spending

Financial experts often recommend the “30-day rule” before making any big purchases. This means giving yourself time to think about whether you truly need an item before buying it. Practicing delayed gratification can help you build self-discipline and avoid making impulsive decisions.

Mindfulness isn’t just for mental health—it’s also a powerful tool for your finances. Pay attention to your emotions when you’re about to spend. Are you making a purchase because you’re stressed, bored, or influenced by a sale? Identifying these triggers can help you break bad spending habits and make more thoughtful choices. Consider planning meals in advance to avoid overspending on takeout or unsubscribing from retail emails that tempt you to shop.

6. Regularly Review Your Progress

Once you’ve established your goals, values, and budget, the work doesn’t stop there. Life is constantly changing, and so are your financial needs and priorities. Regularly check in on your progress to see if you’re on track with your spending and savings goals. Evaluate your budget at the end of each month and make adjustments if necessary. Are your purchases still in alignment with your values? Are you getting closer to your goals?

As your life evolves, so should your spending plan. Don’t be afraid to adjust your budget and goals to reflect your current circumstances.

Final Thoughts

Being intentional with your spending takes practice, but the rewards are worth it. By aligning your spending habits with your values and goals, you’ll be able to make smarter financial choices that support the life you truly want. With a clear budget, self-discipline, and a focus on what really matters, you can take control of your finances and move closer to achieving your dreams.