What Does “Loud Budgeting” Mean for You?

One of the new buzzwords gaining momentum in 2024 is a term called “loud budgeting”. So what’s this all about?

Simply put, loud budgeting is being honest about what you do and don’t want to spend money on. And by being honest, the intent is that you share your money opinions openly and loudly. We all face pressure from family and friends to follow along especially when we secretly know we can’t really afford to go with the flow. Whether you want to call it FOMO (fear of missing out), following the herd, or good old fashioned peer pressure we all feel ashamed to admit we can’t keep up with the crowd.

So, what might loud budgeting look like? Well first you will need to make a budget. Perhaps you leave a subtle message on social media stating that this year you plan to cut back on luxuries such as frequent restaurant meals, shopping sprees, or vacations. When you gather with friends you vocally establish that expensive options are simply not in your budget and suggest more economical ideas. In short you learn to say no.

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It’s a Novel Idea But Can It Really Work?

When you hold yourself accountable by vocalizing your money plans you’re letting others in on your financial goals. This can encourage them to cheer you on. And when friends and family members clearly understand your financial priorities, they may even plan budget-friendly outings to ensure you can join in. You might even encourage them to set a similar financial goal. Of course it can also backfire and you end up facing criticism or get labelled cheap or stingy. This is the point where your willpower must step up and hold firm.

Hold Firm Against Opposing Opinions

Ironically the most difficult part of achieving your financial goals has absolutely nothing to do with financial planning. Going against the trend and holding firm when others believe otherwise is the most difficult hurdle you’ll face. There is absolutely no shame in admitting to others that you can’t or won’t spend money just to fit in with their group.

Like most learned behaviours the first time you loud budget will be the most difficult. It will get easier from there. Once people understand your priorities they’ll either support you or move on with their own destructive behaviours.

Is “Loud Budgeting Enough?

Having financial goals is a great beginning but without the desire and initiative to achieve those goals you are simply dreaming. Communicating your money opinions to others is the first step to eliminating the obstacles that prevent you from succeeding. The contest is between you and yourself.

In my E-books (“Water Barrel” and “The Balance”) I discuss simple methods to live sensibly for today, take charge of your financial affairs, and invest safely for the long term. For more information please visit David Penna Amazon.

As always, I am not a qualified financial advisor. I just relate financial management to my own experience which may not resemble yours at all. Advice is frequently worth exactly what you paid for it. Most of mine came from expensive experiences.