This begs the question: Should personal finance experts continue to rely on this diet-like approach to money? The answer complicates everything the personal finance industry has been teaching.
Just like diets, research regularly finds people don't stick to budgets. An experiment at the University of Minnesota in 2018 found that the practice of budgeting makes spending unpleasant.
The study found the lower enjoyment meant participants had lower intentions to continue tracking a budget, indicating that traditional budgeting may not be effective in managing finances.
Even if you're willing to push through the pain of budgeting, the practice doesn't come with many empirical benefits, making its effectiveness a topic for reconsideration.
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