Managing money could be challenging, and some are unsure if they are doing the right thing or spending like crazy. However, according to Morgan Housel, author of the book "The Psychology of Money," no one is crazy.

"People do all kinds of crazy things with their money," he says. Housel admitted that even he does things with his money that completely makes sense to people but might look crazy to others.

Housel discussed in an interview with CNBC several takeaways we can learn from to avoid regrets in the future; it is best to avoid extremes, including saving that could force you to take dramatic measures to play catch up, as per Housel.

Spending money is the fastest way to have less

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Here are What Money Can Do to Your Future Rather Than Spending It Like Crazy Managing money could be hard and some are not sure if they are doing the right thing or spending like crazy. However, according to Morgan Housel, author of the book “The Psychology of Money,” no one is crazy.

According to CNBC, the rich and poor distribution was less dramatic during 20 years of post-World War II than it is today. People who are rich and poor lived similar lifestyles before. Those who are wealthier drove more expensive cars, but everyone had a TV and watched the same shows and listened to the same radio programs.

People's lifestyle continued climbing due to the part that was influenced by social media like Instagram. "The ability to inflate expectations is higher with social media than it ever has been before. It takes that same cycle that plays for 60 years and it just kind of puts it on steroids," Housel said.

Read also: 6 Surprising Differences Between A Rich vs Poor Mindset

Savings can buy you freedom

There are specific reasons why people save money. However, people should put aside funds to anticipate unexpected events, according to Housel. Having extra savings could give you freedom and flexibility when you need it.

Therefore, waiting for the right job to come along when you are unemployed or finishing your career is okay. One way to check whether you are managing your money in the right way determines if you can sleep at night, Housel said.

You could ask yourself if the things you do would also be financially acceptable to someone else. If it would not, you could learn from that, House suggests.

Signs of Overspending

It is not easy to determine your own negative lifestyle, as per Money Crashers. So here are some behaviors to check and decide whether or not you are overspending each month:

• You don't add up to your budget- if you have a fund worth $100 for clothes, but you spent $300, meaning your splurge could be affecting the more essential expenses such as groceries, utilities, or your retirement savings contributions.
• You only pay for your credit minimum- you are overspending if your credit card balance is high and your budget becomes tight that you could only make the minimum payment monthly. It is a tell-tale sign of overspending that you are willing to assume long-term debt because you only want something you can't afford.
• Your debt is greater than your monthly income- your monthly income must be higher so you can make your credit card payments in full with all of your other obligations and financial responsibilities.
• You enjoy the fun stuff but neglect to settle bills and expenses- financially savvy people know the importance of paying fixed expenses before buying items that would give them fun like electronics, clothes, and vacations. You are a habitual overspender if you are heading to the mall and treating fixed expenses as an afterthought.
• Expenses rise with your income- you should enjoy new jobs, promotions, children leaving home, and even a windfall or two throughout your life. If every time you have an increase in your income and at the same time, your lifestyle-based expenses increase, you are consuming more than what you are getting.
• Your closet has more stuff than in your bank account - having too much stuff like designed shoes and clothes that all still have tags and an empty bank account represents damaging your financial behavior.

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