Why Traditional Budgeting Fails and What’s Missing from Your Money Plan

11 snips

Feb 17, 2025

Guest

Jen Smith

Guest

Jill Sirianni

Jen Smith and Jill Sirianni, hosts of the Frugal Friends podcast and authors of "Buy What You Love Without Going Broke," discuss the limitations of traditional budgeting. They emphasize values-based spending as a method to combat impulse purchases and enhance financial confidence. The conversation delves into aligning financial choices with personal values and reframing financial mistakes without shame. Additionally, they touch on retirement savings, financial blind spots, and the importance of enjoying money while planning for the future.

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ANECDOTE

Debt Payoff Hangover

Jen Smith paid off $78,000 of debt in two years following traditional financial advice.
She experienced a "debt payoff hangover" and realized traditional advice didn't address her spending habits.

INSIGHT

Nuances of Personal Finance

Traditional financial advice often overlooks the nuanced relationship between personal values and spending.
Financial decisions are intertwined with personal experiences and current context, making a one-size-fits-all approach ineffective.

ADVICE

Values-Based Spending

Align your spending with your core values using Maslow's hierarchy of needs as a guide.
Focus on the "four Fs": faith, family, friends, and fulfilling work, to prioritize spending on higher-level needs.

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Learn how values-based spending can help you curb impulse buys, avoid financial blindspots, and rethink your money habits

How can you stop impulse spending? How do you know if you’re making good financial choices? This episode explores mindful spending and financial habits that may be holding you back. Personal finance Nerd Kim Palmer kicks off the episode with a discussion on spending habits with guests Jen Smith and Jill Sirianni, hosts of the Frugal Friends podcast and authors of the new book, Buy What You Love Without Going Broke. They explore the pitfalls of extreme budgeting, how values-based spending leads to financial confidence, the importance of aligning spending with what truly matters, strategies to curb impulse purchases, and how to reframe financial mistakes without shame.

Then, hosts Sean Pyles and Elizabeth Ayoola discuss financial blindspots with Jeremy, a listener who works as a talent agent in New York City. They dive into how to evaluate whether you're on track with savings, when to prioritize your time over income, and how to address financial gaps you might not be aware of. Jeremy shares his detailed approach to budgeting and saving while expressing uncertainty about whether he's missing something in his financial plan. They explore retirement savings options beyond a 401(k), the importance of disability insurance, estate planning considerations, and how to balance long-term financial security with enjoying money in the present.

Are you on track to save enough for retirement? Use NerdWallet’s retirement calculator to check your progress, see how much retirement income you'll have and estimate how much more you should save: https://www.nerdwallet.com/calculator/retirement-calculator

In their conversation, the Nerds discuss: impulse spending, financial blindspots, mindful spending, values-based spending, budgeting tips, budgeting strategies, spending guilt, financial regrets, smart money habits, how to stop emotional spending, personal finance mistakes, how to balance saving and spending, financial security, how to make a financial plan, retirement savings, estate planning, disability insurance, high-yield savings, robo-advisor investing, early retirement planning, how to save for retirement, and brokerage account alternatives.

To send the Nerds your money questions, call or text the Nerd hotline at 901-730-6373 or email podcast@nerdwallet.com.

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