“Loud budgeting” is the new trend making the rounds on the social media circuit. Heralded as a way to help keep your finances in check, “loud budgeting” is gaining quite the following. For good reason: the principles of “loud budgeting” can assist you to control your spending, boost your finances, and help you to achieve your long-term goals.
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While the term “loud budgeting” is novel, it is based on solid ideas that have been around for quite some time. Having a plan for your spending decisions, and sticking to it, is simply good financial hygiene.
What is the “Loud Budgeting” Trend?
“Loud budgeting” could only become a concept in the age of social media, where anyone has a platform to share whatever suits their fancy. Coined by the TikTok content creator Lukas Battle, “loud budgeting” is the act of posting about forgoing certain purchasing decisions and your reasons for doing so.
In other words, you are justifying your spending choices with your social network. By publicizing your decisions, you are defining your choices and providing a justification for them.
Making a plan for your finances and sticking to it should sound fairly familiar. The idea that you should balance your after-tax income with your spending needs is the essence of budgeting.
Creating a budget is one of the most important steps you can take to be responsible with your finances. The benefits are multiple, but arguably the greatest one is that it will allow you to be intentional with your spending choices.
How Can “Loud Budgeting” Help You?
“Loud budgeting” relies upon the idea of positive peer pressure. By sharing your intentions with your social circle, the theory goes, you will be more likely to stick to your decisions.
This is similar to the idea of having an accountability partner, both with your finances but also with other goals. It is a well-known phenomenon that making commitments to others will help you adhere to your resolutions.
For instance, if you have made a plan to work out with a partner, you will be more likely to keep to your regimen, since you know that someone else is counting on you. It is much harder to ignore your early morning alarm clock to go for that run if your friend is waking up, too.
“Loud budgeting” amplifies this dynamic by increasing the audience that you are including in your announcement. Now, everyone in your social circle can be aware that you are cutting down on certain items today to save for your long-term goals tomorrow.
How to Start “Loud Budgeting”
If you want to begin “loud budgeting”, the very first step you should take is to create a budget. If you do not know your income or your spending, it is impossible to be intentional with your decisions.
If you do not already have a budget that you are working with, there are many different types of budgeting techniques to choose from. Take some time to understand these various frameworks, and think about which one could be the most appropriate fit for you.
For instance, there are budgets that are geared towards those who are looking to implement a “savings first” mentality, along with others that are laser-focused on helping you cut back on spending. Some offer general guidelines, while others are much more hands-on and labor-intensive. All these different budgetary roads can eventually lead to the same destination of financial responsibility.
That being said, a budget is only as strong as its ability to consistently guide your financial decisions. As you create yours, make sure that you are choosing one that fits your inclinations and matches your goals. And then, feel free to share your spending decisions as far and wide as you wish.
You Can Also Practice “Quiet Budgeting”
There is no such trend known as “quiet budgeting,” though this is a timeless concept that has been used for generations.
In other words, you would create a budget, and then stick to your decisions. There is no need to share your spending choices, or justify them, with anyone.
Personal finance, like all personal decisions, is for you and you alone. You are the master of your financial fate. If you prefer to keep your spending choices private, that is a completely legitimate decision.
There is no single path to sound financial practices, nor just one approach to managing your finances. Whatever method works for you is the best one to choose.
Conclusion: Being Intentional With Your Finances
There are plenty of new trends that have value, and “loud budgeting” can certainly help you to keep your finances under control. By forcing you to vocalize your intentions, it can help you to be intentional with your spending choices.
The benefit of publicizing this information with the world is dependent on your own personal comfort level. Regardless of how you decide to share your financial choices–keeping them private or announcing them loudly–making a plan and sticking to it is always a wise approach.
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