1.

Happily exchange money for value

The first rule of intentional spending is that you shouldn’t spend
money on goods, services, or experiences. You should exchange
money for value.

As such, you change the definition of your purchases. Instead of

defining an item by type, you define it by value.

What kind of value?

The term “value” has various meanings in the context of

intentional spending.

First, we have the item’s monetary value. This value can decrease

— like the value of a car, increase — like the value of a house, or
remain stable.

Next, an item can add practical value to your life. When spending

money on something, ask yourself how it will improve your life in
practical terms.

Finally, purchases can have psychological or sentimental value.

A romantic getaway with your partner might not have monetary or
practical value, but it will strengthen your bond and provide
sentimental value.

Identify a specific purchase’s value. If there is none or not enough,

rethink the purchase.

2. Long-term value trumps short-term

value
As a general rule of intentional spending, it’s best to prioritize
long-term value over short-term value.

Don’t get me wrong. Short-term value can offer temporary surges

of happiness and great memories. An exquisite bottle of wine will
disappear after you drink it, but the occasion could spawn fond
memories.

Nevertheless, short-term value creates the risk of spontaneous

spending. And spontaneous purchases often break your budget
and spending rules.

In this context, short-term value and spontaneous purchases work

as long as they remain isolated exceptions.

Once they become the norm, however, they will turn into blind
spending habits, the opposite of intentional consumption.
Consequently, most of your purchases should provide long-term
value.

As an example, if you buy five low-quality coats every year, you’ll

spend the same amount as you would on one long-lasting, well-
made down jacket.

The former are price-worthy, good-looking, and you like their

style.

However, because they aren’t as well-made as their more

expensive counterparts, you’ll have to replace them every year.
They provide short-term value and create a cycle of spontaneous
spending.