You pause just outside the café door, coffee craving in mind, wallet in hand, yet something holds you back. For many of us, what used to be a mindless routine has become a careful decision. Not because we don’t want the coffee, but because we’re weighing up whether it’s worth spending the money. This is intentional spending. With the rising cost of living and competing priorities, our spending style is changing. These small hesitations before tapping our cards reflect a desire for clarity, balance, and using money in a way that supports our lifestyle, not just the bills.
Why are we rethinking our everyday expenses?
When we look at shoppers, there are 4 types of spenders. You’ve got abundant spenders who are frivolous and enjoy money in the moment. Then you have neutral spenders who use money rationally and don’t tend to have an emotional attachment to purchases. There are scarcity spenders, who suffer from anxiety about spending, and try to hoard their money. And finally, there are avoidance spenders, who ignore their financial realities, which usually ends badly. In the past, people were generally abundant or neutral spenders, but as we’ve mentioned, they are now hesitating before buying, leading more towards scarcity spenders.
For many, it’s not one big expense that is causing concern. It’s the accumulation of small, regular purchases that quietly chip away at cash flow. These are the personal treats and conveniences we often overlook in the moment. However, beyond our daily choices, there are also essential living costs that impact our financial picture. Groceries, fuel, and insurance are all things we also must pay for, and rates are continuing to rise. When we consider both these everyday purchases and the ongoing costs of living, it becomes even clearer why we’re becoming more aware of our spending patterns.
What is intentional spending?
Intentional spending doesn’t necessarily mean that you have to stop living your life and spending money on things that bring joy to your day. Rather, it’s about taking a moment to understand your overall spending, where it’s all going, and where you can make small changes so you can say yes to the things you enjoy.
Being aware is the biggest factor. Understanding where all your money is going and what you need to prioritise for that day or month lays the foundations for intentional spending. You have the choice to say yes or no to a coffee, and when you know where your money is going, you’re in a much stronger position to decide how you want to support your lifestyle.
The small things add up
Something that comes up frequently with our financial planners in Geelong is the trap of small purchases, and it leaves clients thinking, “Why do they add up so quickly?” At the time, small purchases are easy to look over, $5 for a coffee here, $15 for lunch there, it doesn’t seem like a lot. This is what catches you off guard: at the end of the month, you’ll check your monthly spending and think, “Where has all my money gone?” That’s where Intentional spending comes in: noticing the patterns early, so the little costs don’t quietly snowball.
This is where we suggest you take a step back, have a look at the bigger picture, and make adjustments without feeling deprived and overwhelmed. Talking to one of our financial planners at LBW is a great way to start. We’ll work alongside you to determine where your money is going, where you can make adjustments, and how you can live the life you want to lead without feeling restricted.
How will budgeting help with intentional spending?
Budgeting expands your choices and gives you more freedom, not less. Instead of feeling restricted, you gain control to make decisions that fit your lifestyle. While some people believe budgeting means cutting back and missing out, in reality, it opens the door to more options. A budget gives you a clear picture of what’s coming in, what’s going out, and what’s left over. When you understand this, you can intentionally decide where you want your money to go, whether that’s enjoying your daily coffee or saving up for that trip or new car.
The important thing to remember is that budgeting isn’t about removing enjoyment from your life. It’s about considering how non-essential expenses fit comfortably within your financial picture. When these small treats are planned for, they stop feeling indulgent and start feeling intentional.
Methods for budgeting
50/20/30 Budget
When it comes to intentional spending, it’s all about understanding what your money is doing. The easiest way to manage this is to split your income into 3 categories and allocate a percentage to each. The 50/20/30 budget allocates 50% of your income to essentials. These are things like bills, board, education, etc. Then 20% of your income should go to your savings. Finally, 30% can go toward your wants, leaving you with enough room to enjoy your coffee, pay your insurance on time, and save up for that European holiday you’ve been dreaming of.
Pay yourself first
This method encourages you to put a certain amount of money into your savings account first. Once this is done, you focus on paying your essentials, then use the rest for your needs. This method can be used for a very simple budget, focusing on what you have to and forgetting the rest.
Zero-based budget
The zero-based budget is where you reset your budget to 0 at the start of each month. All the money you earn serves a function. The overarching goal of this method is that your income minus expenses will equal 0 by the end of the month.
Envelope method
The final budgeting method is putting cash into separate envelopes, covering different expenses, and spending only that amount in each category for the month. For example, you may put $500 into a living expenses envelope, $200 into a food envelope, and so on. The aim here is to spend no more than the put-away amount and only use what you have. This method can be difficult, as it doesn’t work for all budgeting categories, and in this day and age, carrying that amount of cash on you isn’t viable.
The important thing is to choose a method that works for you and your lifestyle goals. If you are unsure about which method to choose, our team of Geelong financial advisors can help guide you to find the best option.
How does speaking to a Geelong financial planner help with budgeting?
When you work alongside a financial planner, we look at the full picture. We listen to you, your goals, and your concerns, and then work alongside you to make decisions about where you can make adjustments to your budget and promote intentional spending. At LBW, we can help you:
- Create a budget that aligns with your lifestyle.
- Build confidence through education around spending and saving decisions.
- Reduce stress by improving your overall clarity and structure.
- Ensure your short-term choices will support long-term outcomes.
For people in Geelong and regional Victoria, having a firm like LBW, who knows the community, the market, and the area, we can provide you with local, personalised advice that makes conversations feel more approachable and relevant.
Is there a right time to speak with a financial planner in Geelong?
Many people believe that you need to wait until you’re stuck or feeling overwhelmed before seeking advice. But it’s important to know that you don’t need to go through this process alone. Intentional spending and budgeting support can be useful at any stage of your financial journey, especially when you’re noticing changes in how you think about your money.
If hesitation is becoming a norm, you’re feeling unsure about your priorities, or you’re wondering how to balance everyday life with future goals, it’s a great idea to talk it through with someone who understands. Our team of financial planners at LBW can help you take a step back, look at the full picture, and create a plan that feels realistic and achievable.
Intentional spending and peace of mind
Feeling confident about your money will often start with a pause. The same pause that happens before you buy that coffee. This hesitation offers a moment to reflect, ask questions, and consider whether your current approach to money still fits your life.
Intentional spending isn’t going to happen as soon as this moment hits, and you don’t need to have all the answers straight away. With the right guidance, clarity builds over time. Take a moment to step back, understand your spending and goals, and work towards creating a budget. When money starts working in a way that supports your values and lifestyle, those everyday decisions feel a lot lighter.
If you are looking for support with your expenses or just want to discuss how intentional spending looks for you, LBW are here to listen. Book an appointment today with one of our Geelong financial planners and have peace of mind that you are in control.
This blog provides general educational information only. The content does not take into account your personal objectives, financial situation or needs. You should consider taking financial advice tailored to your personal circumstances.
LBW Business + Wealth Advisors is an Authorised Representative of LBW Wealth Pty Ltd ABN 56 652 382 128 AFSL 534569. Please see our website www.lbwca.com.au or call 03 5221 6111 for more information on our available services.
