Are you ready to kick off the new year? Well, before you dive into a budget overhaul, you might want to hear personal finance expert Suze Orman’s take on the matter.
Suze Orman recently compared budgets to crash diets, saying that the restrictiveness of both almost always leads to a purge. “I hate budgets,” she said in a Wall Street Journal interview. Instead, she recommended focusing on smaller decisions that make you feel more in control of your bank account.
But don’t just take Orman’s word for it. Financial educator Melissa Browne also believes that budgets don’t work for everyone in the same way that diets don’t. Instead, she suggests focusing on spending and investing well to achieve your financial goals.
So, before you start cutting everything out of your budget, consider Orman’s advice to make smaller, empowering financial decisions. Orman suggested that maybe saving $10 or avoiding a few nights of dining out could make a significant difference to your bank account.
To further debunk the need for strict budgeting, a survey by OppLoans found that 73% of Americans don’t regularly follow a budget.
Self-made millionaire Ramit Sethi also called meticulous budgets “pointless” in 2019. He recommends creating a “conscious spending plan” that doesn’t have you obsessing over every dollar spent. This plan focuses on tracking your monthly costs, savings, investments, and guilt-free spending.
Ultimately, the key to managing your finances may not be a strict budget, but rather finding a balance that works for you. It’s all about making decisions that make you feel more in control and secure about your finances.
So, before you start skipping out on your favorite luxuries, consider what might make you feel more financially secure without completely robbing yourself of things you enjoy.
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