Creating a values statement is a powerful exercise that serves as a road map for making financial decisions that align with one's core values and priorities, ultimately leading to a more fulfilling and meaningful life. By identifying what truly matters to an individual, a values statement can help guide financial choices and ensure that resources are allocated towards what brings the most joy and satisfaction.

To create a values statement, one should first reflect on their ultimate perspective on what is important in life. This can be done by imagining oneself looking back on their life when they are old and gray, and picturing what would make them think, "I lived a great life. I did well." This exercise helps to identify the core values and priorities that truly matter to the individual.

Next, one should go through a list of words or concepts that resonate with them, choosing those that are most important and truly represent their values. It is essential to trust one's gut instinct and not choose words that they think they should choose. Once a list of five to ten words has been narrowed down, a statement to live by can be created.

This values statement can then be used as a road map for making financial decisions, ensuring that expenses align with one's core values and priorities. For example, if one values family and connection, they may prioritize spending on experiences that bring them closer to their loved ones, such as vacations or special events. Conversely, they may choose to cut back on expenses that do not align with their values, such as unnecessary material possessions or excessive dining out.

By using a values statement to guide financial decisions, individuals can create a more meaningful and fulfilling life, as they allocate their resources towards what truly matters to them. This approach not only leads to greater satisfaction but also helps to reduce financial stress and anxiety, as individuals can confidently make choices that align with their core values and priorities.