How the ‘loud budgeting’ trend could help you save more money

[ad_1]

The pressure to spend money can be strong in many social situations. Perhaps a group of friends invites you to a concert or sporting event over the weekend, but you don’t have room in your budget for the tickets. Maybe your family invites you on a fun-filled vacation, but you can’t afford your share of the room and board.

Instead of making up an excuse for why you can’t make it, or worse, going anyway and charging the expense on a credit card, a new called “loud budgeting” could be a better approach.

Loud budgeting is a money management strategy that encourages you to be honest with your loved ones about your financial goals. This social media trend is helping many people normalize talk about money in a transparent and open way.

Read on for more information about what loud budgeting is and how it works. You’ll also discover some of the benefits of loud budgeting, along with tips to implement this financial strategy in your own life.

What is loud budgeting, and how does it work?

Loud budgeting is a financial management strategy that helps you say “no,” especially to social activities that don’t align with your money goals. It’s a way to set and verbalize financial boundaries with your family and friends by being honest and communicating which expenses do and do not fit into your . Instead of, “I don’t have the money to spend,” you explain why you’re making a choice to spend your money in other ways.

When you participate in the loud budgeting trend, you help remove the taboo around talking about money. In other words, you embrace the idea of financial transparency.

Maybe you’re spending less on unnecessary expenses because you want to . Or perhaps you’re trying to build an or save money for retirement. Whatever your financial goal may be, loud budgeting gives you permission to talk to your friends and family about the financial objectives you’re working to accomplish — and why you may need to decline spending money outside of your financial plan in the meantime.

Read more:

Benefits of loud budgeting

There are numerous potential benefits that loud budgeting may offer you. Below are a few examples.

Accountability: If you have supportive family and friends, sharing your financial goals could help you create accountability for the personal financial goals you’re trying to accomplish.
Inspiration: When you’re open with your loved ones about your personal money goals, it might inspire family and friends to avoid financial bad habits like overspending or work toward their own money objectives.
Avoiding regret: Many times, people feel obligated to accept social invitations from family and friends because they don’t want to disappoint others. However, loud budgeting gives you permission to say no to invitations (and the extra expenses that accompany them) by speaking up about your financial situation and priorities.

How to implement loud budgeting in your life

Loud budgeting starts with a financial plan — AKA a budget. If you don’t already have a budget to manage your money, you might want to check out the or to see if either of these approaches makes sense for you. It’s also important to learn the difference between and how to budget for each.

Once you choose your money management strategy, here are some helpful tips on how to implement loud budgeting in your life.

Set your financial priorities

To be effective at the loud budget strategy, it’s important that you’re able to communicate your money goals with others. Still, keep in mind that it’s fine to share as much or as little information as you feel comfortable with your friends and family members.

For example, you might want to tell certain friends that you need to skip a social event simply because the expense isn’t in your budget. But you may feel comfortable telling a close family member that you’re choosing to forgo dinner because you’re working hard to pay down your credit card debt.

Find accountability partners

Consider asking key family members or friends to support you as accountability partners in your loud budgeting journey. Others may even feel comfortable posting their accomplishments (and setbacks) on social media as they learn how to stick to a budget and avoid overspending.

Suggest alternative options

Sticking to a budget doesn’t mean you can’t enjoy your life or never spend time with family or friends.

First, you can leave some room in your budget for these types of expenses. But if a loved one invites you to an expensive meal or entertainment event that doesn’t fit your budget, don’t be afraid to suggest more affordable alternatives. You can still spend time with the people you care about without the need to sacrifice your financial priorities in the process.

If you want to participate in fun activities, vacations, or events with your loved ones from time to time, there’s nothing wrong with doing so. And if you’re worried about these types of expenses derailing your financial goals, consider finding alternative ways to raise some extra cash.

Working a short-term side hustle might be worth considering if it helps you stay on track with your financial goals and gives you the additional money you need.

Is loud budgeting right for you?

Loud budgeting could be a good fit for anyone who feels the need to set better boundaries where their spending is concerned. For many people, the idea of turning down social invitations feels intimidating. After all, you don’t want to hurt your friend or family member’s feelings. But you should never have to feel guilty about sticking to your money goals.

Sharing your financial objectives with the people who are close to you can be empowering. Plus, as you practice loud budgeting, you may find that you not only set yourself up for success. You may also inspire your friends and family members to start working toward their own money goals as well.