“Loud Budgeting”: Why You Should Share Your Money Goals
There are questionable social media trends, and then there are the ones that are worth following. “Loud budgeting”, a term coined by a 26-year-old comedian and content creator that made the rounds on TikTok is one such example.
While the term is novel, the concept itself is not. Simply put, “loud budgeting” is about being honest and open when it comes to money. It presents a different way to think about money — one that is designed to dispel feelings of embarrassment or insecurity when it comes to conversations about personal finances.
Unlike short-lived TikTok trends, the enduring appeal of “loud budgeting” lies in its long-term benefits and how it fosters open communication about your financial goals and spending limits. Amidst inflation and consumerism, “loud budgeting” is a refreshing take that encourages a more live-within-your-means frugality.
So, what are the upsides to “loud budgeting”?
“Loud budgeting” promotes financial literacy. For starters, in order to share a budget with others, you’ll need to create one. This compels you to reflect on your financial goals and devise a budget to reach them.
Most of the decisions we make are driven by emotions, including those involving money. Communicating the boundaries of your budget to others helps you be responsible for what you can and cannot afford. It deters you from spending impulsively and keeps you accountable to your financial goals. Essentially, “loud budgeting” acts as a way for you to check your emotional relationship with money, and spot the potential pitfalls of emotional spending so you can avoid it.
The social dimension of “loud budgeting” is also helpful for your personal financial journey. When others are aware of your budgets and financial boundaries, there will be less obligation and pressure to participate in social activities beyond your means. This helps to foster more supportive and understanding social circles.
Through “loud budgeting”, you feel empowered that you’re sticking to your financial goals. Even if it means turning down activites, you can still be positive by suggesting alternative ideas or lower-cost activities later on.
Ready to start budgeting or relook your personal financial goals? Here are three books to help you in your journey.
1. The One Week Budget by Tiffany Aliche
Nicknamed ‘Budgetnista,’ financial educator, Tiffany Aliche demystifies day-to-day budgeting and shares how you can manage your money without hassle. Aliche presents a practical approach to budgeting that is accessible and achievable for anyone, regardless of their income level or financial background. She outlines the importance of understanding your current financial situation, setting realistic goals, and creating a personalised budget that reflects your priorities and values. Within the book, you’ll find actionable strategies for tracking expenses, reducing spending, and increasing savings.
The book is a step-by-step financial guide designed to transform your financial situation in just seven days, all while emphasising the importance of accountability and discipline.
Get the book here: Audiobook
2. The Total Money Makeover by Dave Ramsey
Dave Ramsey is apersonal finance expert who is known for giving blunt but prudent advice to people about their financial situation on his programme, The Ramsey Show. In his best-selling book, The Total Money Makeover, he presents an approach based on seven principles that emphasise personal responsibility, budgeting, debt elimination, and wealth building. He champions a cash-based budgeting system, highlights the importance of emergency funds, and the power of living debt-free.
With sound financial principles and real-life stories, the book serves as comprehensive financial guide and a roadmap to financial peace and security.
Get the book here: Physical Book, eBook, Audiobook
3. The Latte Factor: Why You Don’t Have to be Rich to Live Rich by David Bach and John David Mann
The Latte Factor: Why You Don’t Have to be Rich to Live Rich is financial self-help book that challenges the belief that achieving wealth requires significant income or sacrifice. The book follows the story of Zoey, a young professional who works tirelessly at her dream job as she struggles to get by her life with the increasing stress of having credit card and student loan debt. Through encounters with a wise mentor named Henry, Zoey learns valuable lessons about the importance of prioritising spending, saving consistently, and investing wisely. Henry teaches Zoey how small changes in her daily habits, such as cutting back on unnecessary expenses like daily lattes, can have a significant impact on her financial future.
The book emphasises the power of compound interest and the benefits of automating savings and investments to build wealth over time. It provide practical tips and strategies for readers to implement in their own lives, such as creating a budget, tracking expenses, and setting achievable financial goals.
It is important to reflect on your own relationship with money and address the emotions you have tied to it. Through the ideas behind “loud budgeting”, you’ll feel more empowered to set financial goals and stick to them. It is important to create small, stackable and attainable goals so you do not falter.
While your budget may not allow you to take part in diners and extravagant nights out with your usual bunch of friends, you can still show up for people in other ways and not feel completely isolated from your social life. Adapting to a financially responsible lifestyle may seem overwhelming initially, but it’ll get better with time.
