Jakarta, CNBC Indonesia – Income and expenses are two things that will never escape your life. But believe it or not, managing expenses can actually result in waste in the future. Is it true?
A financial planner in the United States (US) calls budgeting an action that is restrictive or restrictive.
Something closely related to restraint can have a negative long-term impact.
It is possible that, at some point, when you receive a large amount of fortune, you do “revenge spending,” or spend excessively to compensate for desires that are always limited due to budgeting.
“Financial psychology talks about financial aspects and human things, namely how a person thinks, feels and acts financially. This also regulates their relationship with money in the past, present and future,” said one financial psychologist who is also a certified financial planner (CFP) in Wisconsin, Preston D. Cherry, as quoted by CNBC Make It.
According to Cherry, psychologically the word “shopping” or spending money is much better than budgeting. Shopping seems to give you freedom and flexibility with the money you have.
Cherry said that the term “managing spending” is more appropriate and this is often called the “Reverse Budgeting” strategy.
Control your money & don’t want to be controlled!
This reverse budgeting strategy is probably the same as the “Pay Yourself First” strategy that you have heard about in financial content either on social media or on blogs.
In essence, you have to spend or spend money first for your future and financial security before you spend it on shopping.
In this way, you will have more freedom to use your money for consumptive needs because you have already paid your obligations.
Are you interested in trying it?
[Gambas:Video CNBC]
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