Finance

This personal finance educator says budgeting is ‘toxic’ — try ‘intuitive’ spending instead

Published

1 year ago

November 27, 2024

Press Room

This personal finance educator says budgeting is ‘toxic’ — try ‘intuitive’ spending instead

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If you’re trying to stay on top of your spending, you might have logged your finances in a spreadsheet, tracked every dollar, and created a strict spending plan, but one expert says budgeting like this can be “toxic.”

Dana Miranda, a certified personal finance educator, is the author of “You Don’t Need a Budget,” a book that looks to liberate readers from the prevailing approach of managing their money.

“Budget culture is our dominant approach to money that relies on restriction, shame, and greed,” Miranda told CNBC Make It in an interview, likening it to diet culture.

“Research shows in budgeting, and we see the same thing with a much broader body of research in dieting, that that kind of restriction doesn’t work,” she said.

“People tend to fail at sticking to those rules, and so you are inevitably going to feel like a failure. You’re going to feel that shame because you’re not reaching those sorts of arbitrary goals that are being set.”

Not everyone agrees, and many financial planners say creating a budget is the single best thing you can do to improve your finances.

However, Miranda cited a 2018 study by researchers at the University of Minnesota who found little evidence that budgeting helps achieve long-term financial goals, adding that it can also increase anxiety.

Sheida Isabel Elmi, meanwhile, a research program manager at the Aspen Institute Financial Security Program, told CNBC Select that budgeting can be especially challenging for low and middle-income families. This is because they’re more likely to have volatile incomes and lower wages which can’t be easily managed by a strict, prescriptive budget.

Try ‘intuitive’ spending instead

According to Miranda, the toxicity of budgeting stems from a capitalistic culture geared toward making more money and accumulating assets, rather than focusing on the quality of life of individuals.

Instead of scrimping and saving your money, Miranda recommended “conscious spending,” as an alternative. “It’s like an intuitive or mindful approach to spending and using their money.”

“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,” she said.

“So how does money serve you in this moment? How can money serve you in a broader way outside of the numbers and spreadsheets that we tend to put it in?”

Miranda acknowledged that it’s not easy to adopt this mindset, but said people need to start trusting themselves more.

When asked about the risk of overspending, Miranda said it’s okay to take on credit card debt. Although controversial, she said carrying debt isn’t always “ethically wrong” or as “destructive” as society would have you believe.

“I consider those as part of the resources available to you to spend,” she says. “As long as we understand how our debt products work and the consequences of different decisions that we make around debt.”

Not paying off your credit card every month can be costly, however, leading to additional debt, an increase in repayments, and damage to your credit score, CNBC Select reports.

Go on a ‘money date’

Another way to avoid reckless spending is to take yourself out on a “money date” every fortnight, 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,” she explained.

On the money date, you can check how your spending is affecting different areas of your life, and prioritize what’s important.

“So if I take this vacation that my friends are planning, how does that impact the money that I’m putting toward retirement savings next month? Or how does that impact what I’m spending in other areas? How does that impact how much I’m going to use on my credit card?” Miranda said.

You can also create a “money map” which helps organize your goals, the resources you have access to, and your financial commitments, she added — and this should be flexible.

For example, if you initially planned for 10% of your money to go into retirement savings every month, but then you realize you’d rather spend that money now, you can do that with a money map.

“You can sort of move it as it makes sense for you, but it helps you to see your financial situation so that you can understand the consequences of decisions you make,” she said.

“You can make sure that you always have this understanding of the lay of the land in your financial situation, so that it’s easier to make those conscious spending decisions as you go about your day-to-day.”

It’s important to note that budgeting is a standard financial planning method recommended by experts, however. Tania Brown, a CFP and former coach at SaverLife, a nonprofit focused on helping low-income Americans save, previously told CNBC Make It that budgeting is important regardless of income.

“A budget tells your money where to go and what to do so that you can have the life you want,” Brown said. “The less money you have then the more critical it is you prioritize where that money goes.”

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Finance

Africa’s climate finance rules are growing, but they’re weakly enforced – new research

Published

3 hours ago

January 11, 2026

Press Room

Africa’s climate finance rules are growing, but they’re weakly enforced – new research

Climate change is no longer just about melting ice or hotter summers. It is also a financial problem. Droughts, floods, storms and heatwaves damage crops, factories and infrastructure. At the same time, the global push to cut greenhouse gas emissions creates risks for countries that depend on oil, gas or coal.

These pressures can destabilise entire financial systems, especially in regions already facing economic fragility. Africa is a prime example.

Although the continent contributes less than 5% of global carbon emissions, it is among the most vulnerable. In Mozambique, repeated cyclones have destroyed homes, roads and farms, forcing banks and insurers to absorb heavy losses. Kenya has experienced severe droughts that hurt agriculture, reducing farmers’ ability to repay loans. In north Africa, heatwaves strain electricity grids and increase water scarcity.

These physical risks are compounded by “transition risks”, like declining revenues from fossil fuel exports or higher borrowing costs as investors worry about climate instability. Together, they make climate governance through financial policies both urgent and complex. Without these policies, financial systems risk being caught off guard by climate shocks and the transition away from fossil fuels.

This is where climate-related financial policies come in. They provide the tools for banks, insurers and regulators to manage risks, support investment in greener sectors and strengthen financial stability.

Regulators and banks across Africa have started to adopt climate-related financial policies. These range from rules that require banks to consider climate risks, to disclosure standards, green lending guidelines, and green bond frameworks. These tools are being tested in several countries. But their scope and enforcement vary widely across the continent.

My research compiles the first continent-wide database of climate-related financial policies in Africa and examines how differences in these policies – and in how binding they are – affect financial stability and the ability to mobilise private investment for green projects.

A new study I conducted reviewed more than two decades of policies (2000–2025) across African countries. It found stark differences.

South Africa has developed the most comprehensive framework, with policies across all categories. Kenya and Morocco are also active, particularly in disclosure and risk-management rules. In contrast, many countries in central and west Africa have introduced only a few voluntary measures.

Why does this matter? Voluntary rules can help raise awareness and encourage change, but on their own they often do not go far enough. Binding measures, on the other hand, tend to create stronger incentives and steadier progress. So far, however, most African climate-related financial policies remain voluntary. This leaves climate risk as something to consider rather than a firm requirement.

Uneven landscape

In Africa, the 2015 Paris Agreement marked a clear turning point. Around that time, policy activity increased noticeably, suggesting that international agreements and standards could help create momentum and visibility for climate action. The expansion of climate-related financial policies was also shaped by domestic priorities and by pressure from international investors and development partners.

But since the late 2010s, progress has slowed. Limited resources, overlapping institutional responsibilities and fragmented coordination have made it difficult to sustain the earlier pace of reform.

Looking across the continent, four broad patterns have emerged.

A few countries, such as South Africa, have developed comprehensive frameworks. These include:

disclosure rules (requirements for banks and companies to report how climate risks affect them)
stress tests (simulations of extreme climate or transition scenarios to see whether banks would remain resilient).

Others, including Kenya and Morocco, are steadily expanding their policy mix, even if institutional capacity is still developing.

Some, such as Nigeria and Egypt, are moderately active, with a focus on disclosure rules and green bonds. (Those are bonds whose proceeds are earmarked to finance environmentally friendly projects such as renewable energy, clean transport or climate-resilient infrastructure.)

Finally, many countries in central and west Africa have introduced only a limited number of measures, often voluntary in nature.

This uneven landscape has important consequences.

The net effect

In fossil fuel-dependent economies such as South Africa, Egypt and Algeria, the shift away from coal, oil and gas could generate significant transition risks. These include:

financial instability, for example when asset values in carbon-intensive sectors fall sharply or credit exposures deteriorate
stranded assets, where fossil fuel infrastructure and reserves lose their economic value before the end of their expected life because they can no longer be used or are no longer profitable under stricter climate policies.

Addressing these challenges may require policies that combine investment in new, low-carbon sectors with targeted support for affected workers, communities and households.

Climate finance affects people directly. When droughts lead to loan defaults, local banks are strained. Insurance companies facing repeated payouts after floods may raise premiums. Pension funds invested in fossil fuels risk devaluations as these assets lose value. Climate-related financial policies therefore matter not only for regulators and markets, but also for jobs, savings, and everyday livelihoods.

At the same time, there are opportunities.

Firstly, expanding access to green bonds and sustainability-linked loans can channel private finance into renewable energy, clean transport, or resilient infrastructure.

Secondly, stronger disclosure rules can improve transparency and investor confidence.

Thirdly, regional harmonisation through common reporting standards, for example, would reduce fragmentation. This would make it easier for Africa to attract global climate finance.

Looking ahead

International forums such as the UN climate conferences (COP) and the G20 have helped to push this agenda forward, mainly by setting expectations rather than hard rules. These initiatives create pressure and guidance. But they remain soft law. Turning them into binding, enforceable rules still depends on decisions taken by national regulators and governments.

International partners such as the African Development Bank and the African Union could support coordination by promoting continental standards that define what counts as a green investment. Donors and multilateral lenders may also provide technical expertise and financial support to countries with weaker systems, helping them move from voluntary guidelines toward more enforceable rules.

South Africa, already a regional leader, could share its experience with stress testing and green finance frameworks.

Africa also has the potential to position itself as a hub for renewable energy and sustainable finance. With vast solar and wind resources, expanding urban centres, and an increasingly digital financial sector, the continent could leapfrog towards a greener future if investment and regulation advance together.

Success stories in Kenya’s sustainable banking practices and Morocco’s renewable energy expansion show that progress is possible when financial systems adapt.

What happens next will matter greatly. By expanding and enforcing climate-related financial rules, Africa can reduce its vulnerability to climate shocks while unlocking opportunities in green finance and renewable energy.

Finance

'There Could Be A Whole Other Life He's Living' 'The Ramsey Show' Host Says After Wife Finds $209K Debt Behind Her Back

Published

15 hours ago

January 10, 2026

Press Room

'There Could Be A Whole Other Life He's Living' 'The Ramsey Show' Host Says After Wife Finds 9K Debt Behind Her Back

A hidden financial discovery exposed the scale of debt inside a long-running marriage. Anne, a caller from Pittsburgh, reached out to “The Ramsey Show” for guidance after uncovering $209,000 in credit card balances. Married for 19 years and now in her 50s, she said the balances accumulated without her knowledge. She said her husband managed nearly all household finances. Anne added that her name was not on the primary bank account. She had no online access, and both personal and business expense

Finance

Will Trump’s US$200 Billion MBS Purchase Directive Reshape Federal National Mortgage Association’s (FNMA) Core Narrative?

Published

1 day ago

January 10, 2026

Press Room

Will Trump’s US0 Billion MBS Purchase Directive Reshape Federal National Mortgage Association’s (FNMA) Core Narrative?

In early January 2026, President Donald Trump directed government representatives, widely understood to include Fannie Mae and Freddie Mac, to purchase US$200 billion in mortgage-backed securities to push mortgage rates and monthly payments lower. Beyond its housing affordability goal, the move highlights how heavily the administration is leaning on government-sponsored enterprises like Fannie Mae to influence credit conditions and the mortgage market’s structure. With this large-scale…