Many financial trends that stem from social media make most financial experts cringe. At long last, there’s one they can stand by, loud budgeting. At its core, loud budgeting is all about financial transparency. Society has a long-held belief that talking about finances is taboo. This trend is turning that belief on its head and saying talk about it freely and openly. Why? Why does talking about finances matter? How can it benefit us?
What is loud budgeting?
Loud budgeting isn’t about disclosing specific numbers or relaying your financial information via a megaphone. It’s about giving a voice to your financial life so that it aligns with your lived life. In other words, as loud budgeting creator Lukas says, “It’s not I don’t have enough, it’s I don’t want to spend.” That small shift in perspective makes a huge impact.
The “I don’t have enough” perspective can be fertile ground for embarrassment and shame. That’s not really a headspace that leaves room for making good financial decisions.
“I don’t want to spend,” on the other hand, comes from an empowered place of choice. The perfect headspace for sound financial decisions. From that perspective, when a friend texts asking you to go out to eat you feel okay saying, “You know what I’m really focused on paying off my credit cards right now, but I’d still love to hang out. Could we do a potluck instead?”
Benefits of loud budgeting
Accountability
Sharing goals with others is one way to support yourself and be supported to reach your goals. In a way, speaking your goals out loud re-affirms them to yourself. It can also put positive pressure on yourself to make them a reality. The chances of people asking how things are going or even actively holding you accountable can also aid in meeting your goals.
Keeping your money instead of giving it to corporations
These are tough economic times for individuals. People, across Canada, are struggling to make ends meet. What’s discouraging is that, at the same time, many large corporations are seeing record-breaking profits. Loud budgeting is one tool the masses have to press an economic reset button. By using loud budgeting as a way to stick to our budget and stay true to our financial goals we’re using our money how we want instead of how corporations want us to. This leads to both short-term and long-term financial gains. In the short term, we won’t be spending money frivolously. In the long term, companies will be forced to reset their financials to meet the new market demands.
Mental wellness
Loud budgeting supports good mental health in a couple of different ways.
- Reaching goals is one of the best and healthiest ways to get a rush of dopamine. A solid dose of dopamine is good for the mind and body.
- It’s been well proven that struggling financially takes a toll on mental health. Many get relief from stress and debt when they set and follow through with a budget that’s within their means. Loud budgeting’s whole purpose is to do just that!
Giving rid of the taboo
The hush-hush nature of finances has some significant disadvantages. When something is “secretive” it lays the groundwork for shame, even in those instances where, arguably, shame is unwarranted. For example, someone might think they’re better than someone else because they have more money. Or, vice versa, someone may feel inferior to someone else just because they have less money. Neither of which is anywhere close to true.
What’s unfortunate is that this shame we feel may keep us from getting help when we really need it.
Loud budgeting encourages more open discussions about money. These discussions can lead people to feel free to get help sooner. Better yet, these conversations can mean greater financial literacy in general which lessens the chances of people needing help in the first place.
Prioritize
In order to budget loudly you need to budget first. That means setting priorities for where to spend your money. This one step is enough to make fundamental changes to your financial health. This practice is arguably even bigger than that. A person’s life goals have a direct impact on their financial decisions. Meaning, there’s a good chance that anyone who’s decided to take part in the loud budgeting movement has taken time to seriously consider and set priorities for their life. That’s a powerful exercise for anyone!
Loud budgeting downer
There’s one main downside to loud budgeting, critique. There’s no way around the fact that sharing financials with others leaves room for potential criticism. Whether referring to your financial goals, your financial situation in general, or even the practice of loud budgeting, there’s a possibility of people sharing an unsavoury opinion.
While it’s never enjoyable to face these opinions consider letting the experience outweigh the opinions. To do that continue to, as the saying goes, plan the work and work the plan. Place your focus on how loud budgeting has been beneficial in your life. Many find that doing so helps take any sting out of any critiques. Eventually, as critics see you benefiting from the process, they may even join you.
How to implement it?
Interested in giving loud budgeting a try? Here’s a list of all the steps to make it a successful practice.
Set goals
Pause to think about what you’d like to buy, do, or achieve in the next month, year, and couple of years. Now, take some time to consider what these goals mean for your overall financial picture. How much money will you need to save and by when to reach these goals?
Track
Keep track of all your income and spending so you get a true and current picture of your spending habits.
Budget
Create a budget that allows you to reach your goals while living within your means. Make sure to leave some wiggle room for the unexpected.
Be loud
Communicate, communicate, and communicate some more. In regards to the loud budgeting trend, this is when the rubber meets the road. Talk about your goals with others and be honest about what you can afford.
Assess and repeat
Many see a budget as set in stone. Instead, think of it as more of a gel. You want it to have some structure, but still be malleable. Yes, sticking to a budget is important, but they are also meant to be tweaked to reflect you as you and your life change.
Have fun!
Have fun with the experience of loud budgeting. Make being frugal chic! Make a day of going thrifting with a group of friends. Share coupons and deals with each other. Along with that, celebrate when you meet your goal.
Wrap up
Loud budgeting offers the idea that you can actually improve your financial life by being open about it. Having more conversations about finances means greater chances of learning how to manage money better. It also invites you to put sticking to a budget higher on your priority list which means less overspending and a greater chance of meeting your goals. While it’s understandable to feel some nervousness about putting this trend into practice, it’s worth giving a shot. Who knows, your friends may even appreciate you breaking the ice so that they feel free to speak up too.
If regaining control of your debt is one of your loud budgeting goals we can help! Our trained Credit Counsellors are familiar with all the various options available to make debt-free living a reality. Contact one of them to learn which option is best for you.
