This personal finance educator suggests that intuitive spending is a better alternative to toxic budgeting.

One expert warns that budgeting like this can be "toxic."

Dana Miranda, a certified personal finance educator, wrote "You Don't Need a Budget," a book that challenges traditional methods of managing money.

Miranda described budget culture as a dominant approach to money that involves restriction, shame, and greed, similar to diet culture, in an interview with CNBC Make It.

"Studies demonstrate that budgeting and dieting both show that restrictions are not effective," she stated.

"You're likely to feel like a failure and experience shame because you won't be able to adhere to those rules and achieve the arbitrary goals set."

While not everyone concurs, many financial experts assert that establishing a budget is the most effective way to enhance one's financial situation.

A 2018 study by University of Minnesota researchers found little evidence that budgeting helps achieve long-term financial goals and can increase anxiety, according to Miranda.

Sheida Isabel Elmi, a research program manager at the Aspen Institute Financial Security Program, stated to CNBC Select that budgeting can be particularly difficult for low and middle-income families. This is due to the fact that they often have unstable incomes and lower wages, making it challenging to adhere to a strict, prescriptive budget.

Try 'intuitive' spending instead

The toxicity of budgeting, as per Miranda, arises from a capitalist society that prioritizes earning more money and amassing possessions over promoting the well-being of individuals.

Miranda suggested "conscious spending" as an alternative to saving money. It involves an intuitive or mindful approach to spending and using money.

Instead of creating a detailed plan for every dollar and adhering to it strictly, rewarding yourself when you follow it and punishing yourself when you don't, consider taking a more mindful approach, moment by moment.

"In what ways does money benefit you in the present, and how can it help you in a more comprehensive manner beyond the numerical and financial perspectives we often associate with it?"

People need to start trusting themselves more, acknowledged Miranda, although she acknowledged that it's not easy to adopt this mindset.

Miranda argued that taking on credit card debt isn't always ethically wrong or as destructive as society portrays it to be, even though it's a controversial viewpoint.

""As long as we understand the consequences of different decisions around debt and consider those resources available to you to spend," she says."

Failing to pay off your credit card monthly can result in additional debt, higher repayments, and a lower credit score, according to CNBC Select.

Go on a 'money date'

Miranda suggested another way to avoid reckless spending is to go on a "money date" every two weeks.

Automating money management can reduce constant money stress, explained she.

You can assess the impact of your spending on various aspects of your life on the designated date and prioritize accordingly.

Miranda wondered how taking a vacation with her friends would affect her retirement savings, spending in other areas, and credit card usage.

She suggested creating a "money map" to organize goals, resources, and financial commitments, which should be flexible.

With a money map, you can easily adjust your retirement savings plan to spend more money now.

"Sorting your financial situation can help you understand the consequences of your decisions, but you can adjust it to fit your needs," she said.

"Ensure that you have a clear understanding of your financial situation to make informed spending decisions."

Experts recommend budgeting as a standard financial planning method, and Tania Brown, a CFP and former coach at SaverLife, emphasizes its importance regardless of income.

""Prioritizing where your money goes is crucial when you have limited funds," Brown emphasized."

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