2 Ways To Cut Toxic Money Habits, According to a Money Expert
Written by
Adam Palasciano
Edited by
Amber Barkley
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If you’re thinking about money management, budgeting is probably the first thing that comes to mind. In fact, according to a 2024 Debt.com survey, 90% of Americans budget their money in some form.
But tracking your expenses using spreadsheets and carefully watching every dollar you spend can get exhausting, not to mention toxic. That’s according to Dana Miranda, a certified personal finance educator and the author of “You Don’t Need a Budget.”
“Budget culture is our dominant approach to money that relies on restriction, shame and greed,” Miranda told CNBC Make It in a recent interview.
However, the reality is that money management doesn’t have to be this way. Here are two ways to cut toxic money habits like budgeting, according to Miranda.
Consider ‘Intuitive Spending’
“Intuitive” or “conscious spending” works a bit differently than budgeting. It consists of being mindful about what you’re spending your money on rather than closely tracking each and every dollar you spend.
“So instead of making a plan for your money on where every dollar is going to go and trying to stick to that and punishing yourself when you don’t, rewarding yourself when you do, take it more mindfully, moment by moment,” Miranda said.
One pro about this method is that you’ll be using your money to serve you at the moment. However, one con about this method is that it can be difficult to assume this type of mindset, and there’s a risk of overspending if you’re not careful.
Take Yourself on a ‘Money Date’
Try taking yourself on a “money date” every once and a while. Miranda said, “It’s a way of automating your money management so that you don’t just constantly have this ticker of money stress running through your head.”
On this money date with yourself, you evaluate how your current spending is affecting different areas of your life, so you can make adjustments as needed. Additionally, creating a “money map” is also part of a “money date.” This can help organize your goals, your financial commitments and the resources you have access to.
One pro about this method is that it may result in a lot less money stress than traditional budgeting. However, a con is that “money dates” may not be an effective enough money management method for some people.
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