Loud budgeting is a trend that may have started as a joke but is fast being embraced by those who want to share their financial goals and priorities. And in doing so, also improve their chances of achieving them.
It was comedian and writer Lukas Battle who first bought the term “loud budgeting” to the world in a late 2023 TikTok post. An alternative to “quiet luxury”, Battle presented loud budgeting as a move away from spending to impress or conform.
As is the way with trends, the idea resonated with people. It has been adopted and its popularity is steadily growing with a group of budding budgeters. The spirit of the movement is about saying a loud “no” to what doesn’t align with your values. But there’s more to it than that. There’s also a right way to go about loud budgeting that will enable you to keep your finances on target – and your friendships intact.
The benefits of loud budgeting:
Before we delve into how to get it right, let’s explore why loud budgeting can be such a powerful tool to put 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. It allows you to 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. By 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 out in the open you are also more 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.
Think of your goals:
Before you start sharing your financial goals with others you must be clear on what they are. Think about what is important to you and what you are working towards. Don’t just have figures in your head. Prepare a proper 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 you can make educated decisions.
What matters to you?
When you have decisions to make about how to spend your money, it can help to think about what is important to you and make intentional choices. This ensures you are not living unnecessarily frugally, but being 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 it loud – and successful!
At Clear Sky Financial, we understand that budgeting isn’t just about numbers; it’s about aligning your financial decisions with your life goals. We can help you prioritise long-term success and empower you to live the life you desire, while building a secure financial future. Please reach out if you are interested in making your budgeting journey both loud and successful.
Information contained in this document is considered to be true and correct at time of publication. In addition, the information provided is general information only, and does not take into account any individuals’ objectives, financial situation and needs. Before acting on any information contained herein, you should consider the appropriateness of the advice having regard to your personal objectives, financial situation and needs.