Kimberly Palmer, Neldwallet
Intuitive budgeting involves approximating costs instead of counting every penny. For some, this kind of relaxed approach is more appealing than traditional budgets.
“It’s like dancing in your numbers,” says Bari Tessler, author of The Art of Money and a financial therapist in Boulder, Colorado.
In fact, Tessler has been alienated by using the term “budget.” The word “budget” can be felt as if there was a right and wrong way.
Tessler prefers “money maps.” The phrase evokes the idea that “it’s something we create ourselves, that we create ourselves based on what stages we are looking after, what we are looking after, what our numbers look like.”
She is part of a growth group of money experts who embrace the popularity of this more intuitive approach.
“We are committed to providing a range of financial services and services to providing financial services to our customers,” said Israilov, a certified financial planner in San Francisco and co-founder of Israelov Financial.
An intuitive approach means spending money on what you feel is right, paying attention to your needs and desires. Instead of prescribing spending guidelines, people can instead rely on their inner voice to make decisions,” he adds.
It’s about you relying on your senses, relying on healthy spending, trusting yourself, and (hopefully) reducing stress. If you want to try an intuitive budget, here are some guidelines to keep in mind.
Capture approximate cash flow
Before moving on to intuitive budgeting, Tessler suggests that you become familiar with your basic expenses each month.
“The key to intuitive budgeting is to have a baseline, a sense of what your expenses are,” she says.
Tracking expenses for several months can help you determine whether you are happy with your spending level or if you want to dial in a specific category.
Intuitive budgeting isn’t the “magic thinking” you simply don’t pay attention and want the best, Tessler says.
Instead, it is fluid and you understand your number.
“It’s not about criticizing yourself, it’s about learning from it and being considerate because we understand this,” she says.
To get a good baseline feeling, you may need to collect some information ahead and write down your repetitive income and expenses.
Listen to your intestines
Intuitive budgeting “relies on the sensations of the intestines,” says Islaylov.
For example, if you are deciding whether to splurge on big TV, Islayov suggests reflecting whether you feel right rather than calculating numbers. For many of his client base he describes as millennial immigrants working in the tech sector, this intuitive approach makes sense, perhaps because they tend to be frugal.
However, this is not for everyone.
“If you tend to overuse it, it may not work for you,” he says.
And even if an intuitive approach works for you, it still requires guardrails.
“At the end of each month, we will make it a habit to audit bank statements and review key spending categories,” Islaylov says.
This will allow you to make adjustments as needed.
Find the right way
“It’s about making sure you use something that suits your life,” says Dana Miranda.
Personal financial advice is not “all-purpose” and pretending to be the same money that applies to everyone can be damaging.
That’s why she encourages her to explore her financial goals and spending patterns, rather than following along with what money experts and influencers advise.
That might mean using intuitive budgeting or variations of it. If the approach chosen does not evoke a sense of stress or shame, Miranda says it is likely sustainable.
Also, it needs to work. In other words, your gut instinct should ensure that you don’t spend more than you make.
Bring more structures if necessary
If you find the free flow of intuitive budgeting to be confusing, Tessler suggests turning to more traditional tools, such as envelope-based budgeting.
Budgeting apps can work well for those who need structure, she adds.
According to Tessler, some life events, such as buying a house, buying a baby, or resigning, may require more guardrails. Then, once the phase passes, we can go back to a more intuitive approach.
“There are certain stages of life that we need to be more vigilant,” she says.
There are others, such as being able to follow the flow during a period of stable income and expenses.
Kimberly Palmer writes for Nald Wallet. Email: kpalmer@nerdwallet.com. Twitter: @kimberlypalmer.
The reason why “intuitive budgeting” is my new favorite budgeting tool was originally featured on Nerdwallet.
Original issue: April 15th, 2025, 2:25pm EDT
