December 26, 2024 - 10:39
The restrict-and-splurge cycle of budgeting gets you nowhere, according to personal finance expert Dana Miranda. Many individuals approach budgeting with the same mindset as dieting, leading to a perpetual cycle of strict limitations followed by indulgent spending. This method often results in frustration and feelings of failure, as people struggle to maintain their financial goals.
Miranda emphasizes that this approach can create a negative relationship with money, much like how extreme dieting can lead to unhealthy eating habits. Instead of fostering a sustainable financial plan, the restrict-and-splurge mentality can lead to overspending when the pressure of strict budgets becomes too much to bear.
To break this cycle, Miranda suggests adopting a more balanced approach to budgeting. This involves setting realistic financial goals, allowing for occasional splurges, and focusing on long-term financial health rather than short-term deprivation. By shifting the mindset from restriction to flexibility, individuals can create a more positive and sustainable relationship with their finances.
