Some financial advice is so ingrained it feels like gospel: make a budget, cut “wants,” and buy a home as soon as possible. But for many people, these “rules” can create stress, limit flexibility, and even sabotage long-term goals. Personal finance expert Dana Miranda, author of You Don’t Need a Budget, argues that blindly following them may keep you from building the life you actually want.
Myth #1: You Need a Budget
Budgets can help some people—but for others, they’re a mental drain. If you’re already spending reasonably and saving consistently, and your income exceeds expenses, tracking every dollar might be overkill. Miranda warns that strict budgeting can trigger “splurge-and-restrict” cycles, similar to yo-yo dieting, leading to guilt and anxiety. Instead, focus on bigger-picture moves like increasing income or reducing major expenses, rather than obsessing over small daily costs.
Myth #2: Wants vs. Needs Is Clear-Cut
Financial advice often suggests cutting “wants” to save money—but in real life, the line is blurry. Is a quick, healthy meal after a long workday a “want” or a “need”? For many, convenience and quality of life matter. Rather than forcing all expenses into rigid categories, consider whether the cost supports your lifestyle and values.
Myth #3: Renting Is Throwing Away Money
Renting often gets a bad rap, but in many cities it’s cheaper and more flexible than owning. Homeownership comes with extra costs—insurance, maintenance, property taxes—that can run into tens of thousands annually. Renting can free up cash for retirement savings, travel, or seizing new job opportunities without the burden of selling a home.
Bottom line: Money rules aren’t one-size-fits-all. If traditional advice doesn’t align with your circumstances or goals, it’s okay to adapt—or abandon—it in favor of a system that works for you.
