A Finance Expert Weighs In on Cardi B and Emma Chamberlain's Viral Money-Management Styles

When it comes to money, everyone follows their own rulebook. Some are meticulous about spending, saving, investing, and budgeting, while others are less enthused (you know which camp you fall in). But what about celebrities who are worth millions? Well, that brings us to beloved pop culture fixtures Cardi B and Emma Chamberlain, who both recently went public with their wildly differing views on money management.

Here's the sitch: last year, Cardi B, who's estimated to be worth around $80 million, tweeted she's extremely conscientious with her money, explaining, "If I don't save ,work and budget, I could lose it too!" Cardi further went on to address that she has "bills, people, and responsibilities," and everything could disappear if she doesn't manage her money correctly. She later explained on "The Jason Lee Show" that to stay on track, she "gets a budget" and reviews everything being spent in her household.

On the flip side, social media maven Emma Chamberlain, who's estimated to be worth around $20 million, recently revealed she has "a lot of checks and balances" that allow her to never check her bank account. Chamberlain then confidently stated she hasn't looked at her bank account in years and has "no idea" how much money is there, but she knows what she "can and can't do."

OK, so what's the best way to manage your money? Is it better to keep a close eye on every penny, or let someone else crunch the numbers and take a more hands-off approach? POPSUGAR talked with Jen Reid, a financial planner, money mindset coach, and founder of Base Financial Planning, to break down the two money-management techniques and weigh in on the pros and cons of both.

First things first, money management, otherwise known as a budget, is the ability to be proactive regarding the income and expenses you're going to receive, Reid says. It's the process of making healthy and educated decisions when it comes to budgeting, saving, investing, and spending, she explains. "Money management is having a spending plan, savings plan, budget, or whatever you want to call it so you can say yes to things that matter and no to things that don't align with your priorities and goals."

According to Reid, there are major benefits in taking a Cardi B-style CFO role with your money. For one, meticulously managing money creates clarity and awareness around what your cash is doing and where it's going, Reid explains. As a result, this allows you to understand or decrease your spending habits and recognize potential red flags that no longer align with your goals, values, or needs, she adds. For example, canceling subscriptions you no longer use or spending less on groceries if you regularly eat out.

Meticulously managing your money can also boost your confidence and overall knowledge in financial conversations, Reid says. When you're educated on your spending habits, you're more equipped to make sound financial decisions and invest in a long-term savings plan, she explains. Plus, having clarity on your finances and being in charge of monetary decisions can give a sense of financial freedom and allow you the flexibility to live your desired lifestyle, Reid explains.

That said, being meticulous around managing your money can create obsessive behaviors if you hyper-fixate on your spending and saving goals, Reid says. If there's too much awareness, you may not allow yourself opportunity or spending spontaneity like starting a business, donating to charity, or taking a trip, she explains. "There has to be a healthy understanding of how meticulous to be."

If you're going to be hands-off managing your money like Chamberlain, it can be freeing to not think about finances and instead focus on what brings you joy in the moment, Reid says. "It allows you the freedom to set it and forget it so you can be more creative and free in other areas of your life."

This can be a downfall, however, if you're unable to stay within your set boundaries, Reid says. Chamberlain mentions she's mindful of what she "can and can't do," but if you're totally unaware of how much money you're spending and saving, or the lack thereof, you may unknowingly max out your budget, which can derail your goals, she explains.

A hands-off money-management system also requires you to entirely rely on someone else to handle your finances, Reid says. And whether it's a partner, spouse, parent, or manager, it can cause tension when another party has massive control over your money, she explains. "When this occurs, there's usually some resentment that pops up when goals aren't met and things aren't able to happen," she adds. As a result, this hands-off approach can lead to tense relationships and undesirable financial burdens if you're not careful.

Ultimately, when it comes to money management and personal finances, it's best to do what works for you. It may seem unrealistic to put yourself in a celebrity's (very fancy!) shoes, but Reid highly recommends learning basic financial concepts that can help you maintain a positive relationship with money. "Have a budget, save, invest, and have good people on your team that can keep you in check."