Can ‘Loud Budgeting’ Help Improve Your Finances?
Personal finance FinTok trend encourages being open, transparent, and ‘loud’ about money and goals
By Melissa Jackson
Have you ever overspent or gotten into debt due to the ‘fear of missing out’ (FOMO) or trying to keep up with the Jones’s? If so, the FinTok trend of ‘Loud Budgeting’ might be just the thing to help improve your personal finances. Rather than creating an appearance of wealth and luxury on social media, loud budgeting encourages being open, honest, and ‘loud’ about budgeting and savings goals. By encouraging followers to be honest about their spending, the trend can help avoid the pitfalls of social media splurging. So whether you’ve heard of it or not, we’ve got some details on the trend and tips for using it yourself.
The Pressure of Social Media on Spending & Credit Card Bills
What is Loud Budgeting?
Loud budgeting is a strategy to make your financial goals and plans more visible, vocal, and actionable. The trend encourages followers to be honest and direct about their financial limits and boundaries. For example, rather than going into debt or leaving bills unpaid to attend a pricey event or extravagant outing, the followers of Loud Budgeting would respond in an honest and direct way, “Sorry, I can’t afford to spend money on that,” or “That’s not in my budget right now”. This approach encourages individuals to be more transparent about their financial situation, share their goals with others, and hold themselves accountable through public sharing and posts.
Being ‘loud’ about budgeting not only removes the secrecy and shame around financial struggles but also makes topics like living according to a budget and financial goal setting public knowledge that anyone can use to improve their finances.
It might seem counter-intuitive to use a social media trend to save money when so many of them feature seemingly perfect vacations, luxuries, and other lavish purchases. But in this case, social media can be used to share your successes and stumbling blocks, reach out for advice, and stay accountable to more than just yourself.
Financial Problems that Follow Social Media & How to Avoid Them
What Are the Benefits of Loud Budgeting?
When people are uncomfortable discussing their finances, you might be wondering what the benefit is of loud budgeting? Because it encourages frank and open discussions about finances, many followers find it easier or more acceptable to miss out or say ‘no thanks’ to yet another pricey outing, like a bridal shower or concert event.
Rather than the ‘quiet luxury’ trend of 2023 – which encouraged understated opulence — loud budgeting encourages frank and honest communication about money. Followers talk about and practice spending that’s in line with their financial situation and goals and focus on setting spending boundaries. The honest conversations about your finances can help remove the pressure to keep up the appearance of status or influence.
Can Loud Budgeting Help Me Manage My Money Better?
The loud budgeting trend can help you disengage from less than helpful or harmful financial habits, e.g., impulsive buying, spending due to a fear of missing out, etc. And can encourage you to practice healthier ones like being honest about what you can and cannot afford, setting healthy spending boundaries, and sharing your progress with others. Additional benefits can include:
Increased Accountability: When you share your budgeting goals and progress with friends, family, and others — especially on social media, you create a network of individuals who can encourage you to stay on track. This can help make it easier to stick to your budget and achieve your financial goals.
Extra Motivation: The act of sharing your financial goals publicly can also be a powerful motivator on its own. Knowing that others are aware of your goals can make it more difficult to back-slide on them.
Setting Clearly Defined Financial Goals: Loud budgeting requires you to clearly define your financial goals and create actionable steps to achieve them. This process can help you gain a better understanding of your financial situation and make more informed decisions.
Realizing You’re Not Alone: Being in debt or struggling financially can feel very isolating. Engaging with others who have similar financial goals can help alleviate this feeling, and it’s also a great learning opportunity. Whether it’s through online forums or local financial groups, the shared experience can be encouraging and educational.
Throwback, Look at Your Financial Picture & How to Pay Off Debt
How Do I Get Started With Loud Budgeting?
To get started with loud budgeting, you will need to take a close look at your financial situation. Once you have done that you can begin to set some goals, outline the steps you’ll take to work towards them, and share your progress.
Start with a Financial Audit: Begin by assessing your current financial situation. List your income, expenses, debts, and savings. This will give you a clear picture of where you stand and what areas need improvement.
Set Clear Goals: Define what you want to achieve financially. Whether it’s saving for a down payment on a house, paying off credit card debt, or building an emergency fund, having specific goals will guide your budgeting process.
Make Your Goals Known: Share your financial goals with trusted friends or family members. You can also consider joining online financial communities or forums where you can discuss your goals and progress with others.
Create a Budget Plan: Develop a detailed budget that outlines your income, expenses, and savings targets. Ensure that your budget is realistic and aligns with your financial goals.
Track and Share Your Progress: Regularly monitor your financial progress and update your followers on your achievements. This can help keep you motivated and provide you with encouragement and advice from others.
Looking for Guidance Around Loud Budgeting and Financial Goal Setting?
If following a FinTok trend for loud budgeting to get help with your money, debt or goal setting seems a bit daunting for you, reach out to us for additional guidance. Our appointments are free, confidential, and are always a ‘judgment-free zone’. There are no hidden fees, fine print, or strings attached. Our friendly accredited financial counsellors can offer expert advice tailored to your specific financial situation, and help you stay on track with your budgeting and money management efforts.
0 Comments