Trending: Loud Budgeting
a New budgeting trend emerges (and actually may be useful)
🚀 What’s happening: The historical pattern of not talking about money with friends and family is starting to change (and we think that’s a good thing).
According to a recent survey the majority of Millennials, Gen Xers and Gen Zers now report growing up in families that talked about money and are more open in general to discussing finances with people (Baby Boomers still tend to stay quiet on discussing money issues).
We realize that money brings up a lot of emotions, which is why we believe that talking about it is one of the first steps in learning how to use money—as a tool— to shape the life you want to live.
As we always say, there are people with a lot of money who are unhappy; there are people with less money who are very happy. The amount of money you have doesn’t matter as much as planning and learning to use it to shape the life you truly want to live (whatever that may be).
In that regard, a new trend is emerging and taking social media by storm that helps to start these kind of money discussions everywhere…
loud budgeting.
Breaking the Silence on Money Matters
Lukas Battle, a passionate advocate for financial literacy and empowerment, first conceptualized the idea of loud budgeting as a means to demystify the often daunting world of personal finance. Drawing from his own experiences and struggles with budgeting, Lukas recognized the transformative power of open dialogue and shared accountability in achieving financial goals.
The term itself speaks to the notion of making one's financial journey audible, breaking the silence that traditionally surrounds discussions about money and inviting individuals to speak boldly about their financial aspirations and challenges.
The term is meant to flip the script on traditional financial conversations. It's about bringing money matters out into the open and being vocal about your financial goals, challenges, and successes.
It involves openly discussing your budget, financial goals, and spending habits with those close to you. This could mean sharing your budgeting strategies with your friends, discussing financial goals with family members, or even posting about your financial journey on social media.
Because of loud budgeting, it is suddenly “cool” to be on a budget.
How to Practice Loud Budgeting
There are many ways to practice loud budgeting, but the core concept is to hold yourself accountable for reaching your money goals by getting others involved (sort of like a friend who goes to the gym with you to keep each other on track).
Here are some specifics you can do today to put loud budgeting into practice for you:
Share Your Financial Goals: Discuss your short-term and long-term financial goals with your partner, family members, or close friends. Whether it's saving for a vacation, buying a home, or paying off debt, sharing your goals out loud (e.x. “I can’t go out to dinner tonight because I am saving for a $5,000 vacation) can help keep you accountable and enlist support from your loved ones.
Document Your Budgeting Journey on Social Media: While it would be a hard pass for most, some people who find public accountability an effective strategy might consider sharing their budgeting successes, challenges, and strategies on your social media platforms. Use hashtags like #LoudBudgeting to connect with others who are on a similar financial journey.
Participate in Budgeting Challenges: Joining budgeting challenges or initiatives can be a fun and interactive way to practice loud budgeting. For example, you could participate in a "No-Spend Challenge" where you commit to not spending money on non-essential items for a set period. Share your participation in these challenges with others and even better, have a “budget” buddy that can hold you accountable to sticking to your goals. Accountability can be a great motivator (if you want us to be your buddy and keep you accountable just shoot us a note here).
Attend Financial Workshops or Meetups: Engage in in-person or virtual financial workshops, seminars, or meetups where you can openly discuss budgeting strategies, financial goals, and money-saving tips with like-minded individuals. These events provide opportunities to learn from others, share your experiences, and receive valuable feedback and support.
Use Budgeting Apps or Tools: Leverage budgeting apps or tools that allow you to track your expenses, set budgeting goals, and monitor your progress in real-time. Many of these apps also offer features that enable you to share your financial data with trusted individuals, such as family members or financial advisors, fostering transparency and accountability in your budgeting efforts (we have a free budget template you can download here).
The Pros and Cons of Loud Budgeting
Like everything, there are pros and cons to this new trend and as we say here often, there is no “right” way for everyone when it comes to money.
When it comes to loud budgeting, here are some of the positives and negatives as we see them:
Positives:
Accountability: Sharing your financial goals with others can help hold you accountable.
Support System: Your friends and family can provide encouragement and guidance along your financial journey.
Transparency: Openly discussing finances fosters trust and transparency in relationships.
Negatives:
Judgment: There's a risk of judgment or unwanted opinions from others regarding your financial decisions.
Privacy Concerns: Some individuals may feel uncomfortable sharing personal financial information with others.
Pressure to Succeed: The public nature of loud budgeting may create pressure to meet financial goals or appear successful.
Final Thoughts…
In the realm of personal finance, we believe there's no one-size-fits-all approach.
Loud budgeting is just one tool in your toolbox, and whether you choose to embrace it or not, the key is finding a budgeting method that works for you and helps put you on a path to living the life you want to live.
Remember, the goal of budgeting isn't perfection—it's progress.
Whether you prefer loud budgeting, traditional methods, or a combination of things, what matters most is taking control of your finances and working towards your financial goals with confidence and determination.
So go ahead, start the conversation, and let your financial journey begin!
More resources in saving & budgeting:
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