Loud budgeting has become a trend among people who want to share their financial goals and priorities to increase their chances of achieving them.
Comedian and writer Lukas Battle brought the term “loud budgeting” to the world in a TikTok post, presenting it as an alternative to “quiet luxury” as loud budgeting represents a move away from spending to impress or conform.
Trends often catch people's attention and gain popularity among a wider audience. The same happened with the idea of loud budgeting, which started to resonate with a growing number of budgeters. The concept essentially involves saying "no" to things that don't align with your values. However, there is more to it than just that. It's important to approach loud budgeting correctly so that you can remain on track with your finances and maintain healthy relationships with those around you.
Benefits of loud budgeting
Before we look at how to get loud budgeting right, let’s explore why it can be such a powerful tool for putting you in control of your financial journey.
The fundamental reason it works is because talking transparently about your finances and sharing your reasoning behind how you want to spend your money gives you power and lets you decline invites in a way that is less likely to offend others.
Being open about your challenges can create a sense of community and inclusion. Sharing and acknowledging that it is normal to have limited spending capacity and that it can be a juggle to manage our short-term spending with our long-term savings goals helps everyone understand each other’s pressures.
Once things are open, you are more likely to be accountable. When you have shared your financial hopes and dreams with others, you are more likely to do what is required to stay on track and get support from those who care about you.
Make it loud and successful
- Think of your goals
Before sharing your financial goals with others, you must be clear about them. Think about what is important to you and what you are working towards. Don’t just have figures in your head – create a budget of what you have coming in, what you need to save to meet your targets, and what you have left over to spend so that you can make educated and confident decisions.
- What matters to you
When you have decisions to make about how to spend your money, it can help you think about what is important to you and make intentional choices. That ensures you are not living unnecessarily frugally but are selective about what you choose to spend your money on, taking into consideration what matters most to you.
- Eye on the prize
It’s important to keep your eye on the prize (or prizes), whatever form they may take. Looking to the longer term, this can be smaller goals, like saving up for a special occasion or bigger ones, such as a home deposit. It could also be prioritising payments such as mortgages, student loans and other kinds of debt. Check-in from time to time to track your spending and savings against your goals.
- Careful communication
Being careful in your phrasing will help make sure feelings aren't hurt when you decline an invitation. Part of loud budgeting is not saying ‘no’ outright – it's about explaining what’s going on for you and offering an alternative that works for you. For example, if you’re invited out for a dinner that you know will blow the budget, you could say, “I’m trying to get enough together for a deposit to buy a place, so I’m on a tight budget at the moment, can we catch up for a BYO barbeque at my place instead?”
Making financial choices that align with how you want to live your life and prioritising long-term goals over temporary indulgences is a great way to set yourself up for a fantastic future. So why not speak up and try making your budgeting loud?
Next steps
Deciding on the best budget approach to navigating your financial goals can be overwhelming.
Speak with your local Nexia Adviser today to explore your options and discuss a suitable strategy that aligns with your future plans and lifestyle to help you connect with your true potential.