Meet “loud budgeting” – a bold and outspoken new approach to money management recently made viral by TikTok. Instead of quietly whispering to yourself about student loans or credit cards, loud budgeting would have you shout from the rooftop about skipping coffee breaks in favor of high-yield savings accounts.
“Loud budgeting gives us a way to challenge social norms in support of healthy financial habits,” says Julie O’Brien, head of behavioral science at U.S. Bank.
This trend’s approach helps you from falling into a “compare and despair” trap where you compare yourself to others and feel badly about not seeming to measure up. With loud budgeting you can take pride in your financial situation, prioritize healthy money management and feel good about your choices.
Here’s how you can embrace the loud-budgeting lifestyle to better invest in yourself and your future.
Loud budgeting is all about openness in financial management. It involves discussing your financial goals, struggles and strategies loudly and proudly with those around you, breaking the traditional silence surrounding money matters. For example, don’t be afraid to say ‘no’ to an expensive concert all your friends are attending, or brunch every weekend. Be strategic, and balance your luxuries, big or small. Just so you don’t feel totally left out, pick some things to say ‘yes’ to and some things to put aside in favor of your savings. Be proud knowing you took the money you saved in lieu of a night out and instead put it in an account you’ve dedicated toward a savings goal like travel, loan payments or in an emergency fund.
• Instant accountability: Publicly declaring your financial goals increases your commitment to achieving them.
• Shared knowledge: By openly talking about money, you could gain (and share) diverse insights and valuable strategies. You might find new and creative ways to save, like telling yourself no food delivery service for the next few months. Or learn about an app that helps you clip digital coupons when grocery shopping. Every little bit adds up.
• Emotional support: Having open conversations about money can alleviate the stress and anxiety associated with the once taboo topic.
• Start with close family and friends: You can use the loud-budgeting tactic to influence your plans – like suggesting a game night in instead of a dinner out.
• Find support in like-minded communities: Look for groups focused on personal finance on Reddit or Facebook where people are already getting real about their gains and losses.
• Know your stats: Understand your financial status and check in regularly. How much did you earn last month and how much did you spend? Check your credit score – it's always good to be in the know. The more you understand your own habits, the smarter decisions you can make.
• Incorporate money talk into daily conversation: Sharing is caring – don’t keep your money-saving tips to yourself. And don’t be shy about sharing you’re skipping out on movie night to add funds to a future down payment.
• Start an investment club: Move over fantasy football. Get together and learn about investments instead. Perhaps start a small club where you study, discuss and even invest in stocks and mutual funds.
Keep going on creating a positive money lifestyle your future you can be proud of. Similar to loud budgeting, learn about how you can deinfluence your finances to help ease the spending pressure so you can make smarter purchases.