As the new year rolled in, a unique money-saving technique took social media by storm. Dubbed “loud budgeting,” this viral trend encourages individuals to be unapologetic about prioritizing their financial goals over social commitments. With TikToks garnering hundreds of thousands of views, loud budgeting has captured the attention of many seeking practical strategies to achieve their financial aspirations or pay off debt.
Too Long; Didn’t Read
- Loud budgeting is speaking openly about your financial goals to your friends and family and declining social events in aims to save money.
- One of the key benefits of loud budgeting is its ability to reframe missed social opportunities as positive actions taken towards achieving financial goals.
- Like everything else, declining social events at the expense of your financial goals should be done in moderation. It is important to stay connected with friends and family (even if it costs you a little bit!)
- Declining invites isn’t the only way to be financially smart and save some money. There are many banks that offer buckets so you can categorize your savings!
What is Loud Budgeting?
The Concept Explained
At its core, loud budgeting involves openly declining social invitations or events that may jeopardize your financial goals. Instead of offering excuses or reluctantly accepting invitations or proposing free alternatives, loud budgeters embrace transparency by candidly stating that the financial impact of the activity conflicts with their current money-saving objectives.
This approach challenges the societal pressure to participate in every social engagement, regardless of the financial consequences. By vocalizing their priorities, loud budgeters aim to empower themselves and others to make mindful choices that align with their long-term financial well-being.
Breaking the Cycle of Silence
Traditionally, discussions surrounding personal finances have often been kept secret. Many individuals struggle to communicate their financial challenges or goals, leading to a cycle of avoidance and potential financial strain. Loud budgeting seeks to break this cycle by encouraging open and honest conversations about money matters.
By normalizing these discussions, loud budgeters hope to destigmatize financial struggles and foster a supportive community where individuals can share their journey without fear or judgment.
Is Loud Budgeting Effective?
Reframing Missed Opportunities
One of the key benefits of loud budgeting is its ability to reframe missed social opportunities as positive actions taken towards achieving financial goals. Rather than perceiving a declined invitation as a missed experience, loud budgeters view it as a conscious choice that aligns with their priorities.
Finding the Right Balance
While loud budgeting can be an empowering approach, you should say yes to these outings every once in a while. Like everything in life, moderation is key. Not having friendships and community can take a psychological toll on us that could be avoided if we spent some money each month on saying yes to these activities.
Declining invites isn’t the only way to be financially smart and save some money. Individuals can leverage tools and strategies that facilitate organized and intentional saving. For example, savings accounts that allow for the creation of separate buckets/categories for different goals can help track progress and prioritize spending accordingly.
Implementing Loud Budgeting in Your Life
Start Small and Build Confidence
For those new to this type of budgeting (or budgeting at all), it’s important to start small and gradually build confidence. Share your financial goals and challenges with a trusted friend or family member, and then gradually expand your circle of transparency as you become more comfortable with open discussions about money.
Set Boundaries and Respect Privacy
While loud budgeting encourages transparency, it’s crucial to set boundaries and respect personal privacy. Not everyone may be comfortable sharing specific financial details, and that’s perfectly acceptable. The key is to find a level of openness that feels authentic and comfortable for you.
Embrace Accountability and Support
One of the strengths of loud budgeting lies in the accountability and support it fosters. Use the feedback and encouragement from your community to stay motivated and on track with your financial goals. Be prepared to offer support and advice to others, fostering a sense of mutual encouragement and growth.
A Movement Towards Financial Empowerment
Loud budgeting is more than just a budgeting strategy; it’s a movement towards financial empowerment and transparency. By challenging societal norms, fostering supportive communities, and encouraging open conversations about money, loud budgeting has the potential to transform the way individuals approach their personal finances.
As the trend continues to gain momentum, it serves as a reminder that financial well-being is not a solitary journey. By embracing the principles of loud budgeting, individuals can find strength in community, accountability in transparency, and empowerment in prioritizing their financial goals without apology.
So set ambitious goals! By staying in and opting for free social events every once in a while, you will save big over time. It’s hard to reject outings in the moment, but future you will be grateful that you did.
