Loud Budgeting: How to Normalize Financial Transparency

In the age of social media, trends come and go faster than ever before. One trend that has recently gained traction on platforms like TikTok is "loud budgeting." But what exactly is loud budgeting?

Let’s discover what to know about this financial trend, how to practice it effectively and work around some of its pain points.

What is Loud Budgeting?

Loud budgeting is the practice of openly discussing and sharing your financial goals, challenges, and successes. A common form of loud budgeting is someone sharing when they declined an invitation that would cost them a substantial amount of money and steer them away from their savings goal. It’s voicing the fact that you’re choosing not to spend money in a certain way.

Have you ever been invited to go on a trip that would cost you more money than you really could afford to spend? In these cases, people get caught making excuses as to why they can’t go, or they do accept the invitation with a chip on their shoulder about how much it costs. Saying no to the invitation can stir up feelings of guilt or shame about not having the money or prioritizing your own goals.

That’s where loud budgeting comes in.

But it’s not just about rejecting invitations or skipping the daily latte. It's about breaking the taboo surrounding money talk and bringing financial matters into the spotlight. From detailing monthly expenses to celebrating savings milestones with other people, loud budgeting encourages openness and accountability in managing personal finances.

What are the Pain Points of Loud Budgeting?

While loud budgeting is great for promoting financial transparency and accountability, it comes with some challenges to navigate.

Sharing intimate details about your finances can make you feel vulnerable or exposed. Doing this requires a certain level of trust and openness with those you choose to confide in. In the case of turning down invitations, you might feel guilt or shame if you are the only one out of a group of friends who is openly stating you don’t want to spend your money for this occasion.

Like with any social media trend, constantly hearing about others' financial successes or comparing your progress to theirs can lead to feelings of inadequacy or pressure to keep up. Try to avoid comparing your story to anyone else’s. If you ever feel like you’re going to post something just to show that you’re keeping pace with your friends, don’t do it.

Despite efforts to normalize money talk, there may still be social stigma or discomfort associated with discussing finances openly. You might feel judged or uncomfortable sharing your financial situation with others.

The important thing to remember here is that loud budgeting doesn’t mean you have to take your finance talk to social media platforms and broadcast it to the world. If you want to simply be more open and transparent about money but are facing these challenges, start small. Share with your inner circle or people you’re most comfortable with.

How to Practice Loud Budgeting

What does loud budgeting look like in practice? Here are some ways you can normalize financial talk within your circle.

• Share your money goals: Define your financial goals, whether it's saving for a vacation, paying off debt, or building an emergency fund. Share these goals with trusted friends or family members to hold yourself accountable. When you first tell them about your goals, explain that you might have to pull back on accepting some invitations for a while to save money.
• Share your tracked expenses: Keep track of your spending habits to identify areas where you can cut back or reallocate funds. Use budgeting apps or spreadsheets to monitor your expenses and track progress towards your financial goals. Consider sharing your tracking methods with friends or family for accountability, or just someone to talk to about where you did well or went off track.
• Schedule regular check-ins: Check in with your spouse, friends or family regularly to review your budget and financial progress. Discuss any challenges or setbacks with them and brainstorm solutions together.
• Celebrate milestones: Celebrate small victories along the way to stay motivated. Whether it's reaching a savings goal or sticking to your budget for a month, acknowledge your achievements and reward yourself. Getting others involved in the celebration helps encourage them to work toward their own financial goals.

Remember, the point of doing any of these activities with others is to normalize financial talk and be a good example of working toward financial wellness.

Turn Loud Budgeting into a Lasting Habit

Transform loud budgeting from a trend into a sustainable habit with a few principles and strategies.

Be consistent. Make budgeting a regular part of your routine. Set aside time each week to review your finances, track expenses, and adjust your budget accordingly.

Automate your savings. Take advantage of automation tools to ensure consistent savings contributions. Setting up automatic transfers to your savings account can help you stay on track even during busy periods.

Reflect and adjust. Regularly evaluate your financial habits and goals. Identify areas for improvement and adjust your budget as needed to align with your evolving priorities. Maybe you find that you can bring weekly lunch dates with your friend back into the picture after some time.

Balancing Financial Responsibility with Quality Time

While embracing loud budgeting can lead to greater financial awareness and responsibility, you also want to strike a balance between fiscal responsibility and enjoying life's moments with your loved ones.

Start by making a list of free activities you can do with your friends or family. Go for a walk or hike. Play cards or have a game night. Watch movies, or simply invite someone over for coffee at your house instead of at the coffee shop where you’re tempted to spend more.

Involve your loved ones in your financial journey. Discuss your financial goals with them and ask them about theirs to foster a supportive environment. Focus on meaningful conversations that strengthen your financial habits without overshadowing personal relationships.

If you do have to say no to an important invitation, offer another way that you can support this person that doesn’t take you away from your financial goals. Maybe it’s spending some quality time together in a budget-friendly activity.

Make Financial Transparency the Norm

If you want to practice loud budgeting, the best thing you can do is lead by example with open dialogue. Encourage open discussions about money within your family and friend circles to break down barriers and foster financial transparency.

Be transparent about your own financial journey and share your experiences with others. By demonstrating the benefits of financial literacy and accountability, you can inspire others to follow suit.

While loud budgeting may have originated as a TikTok trend, its underlying principles hold great value in promoting financial awareness and responsibility. By finding a balance between financial goals and quality time with loved ones, cultivating consistent budgeting habits, and advocating for broader financial transparency, we can collectively work towards building a more financially empowered future for all.

Let's make financial transparency not just a passing trend but a lasting norm in our communities.