Is there anything more unpleasant than having to explain why you don’t want to spend money on a lavish meal or trip, especially if you’re trying to pay off debt or grow your savings?
During my debt-payoff path, I turned down many individuals (and a lot of spending) in order to meet my financial goals. I didn’t have a label for that approach at the time, other than “It’s not in the budget.” But there’s a TikTok movement going on right now that’s helping us normalize talking about money in a genuine way. It’s called loud budgeting, and I believe it’s just the thing to keep you on track with your financial objectives Yes!
So, what exactly is loud budgeting, and is it for you? Let us chat about it.
What Does “Loud Budgeting” Mean?
Loud budgeting is a TikTok fad originated by writer and comedian Lukas Battles. He said that loud budgeting is a method to say no when friends, family, Instagram influencers, or anybody else asks (or forces) you to spend money you don’t want to.
The loud budgeting movement is around financial openness. So, whether you’re saving for an emergency fund or paying off debt—or, heck, you just don’t want to spend your hard-earned money on a new pair of Jordans even if that’s what all your pals are doing—loud budgeting provides you the freedom to say, “No thanks, I’m good.” I adore it! You should never feel embarrassed or guilty about setting financial limitations.
When I resolved more than ten years ago to take charge of our finances and pay off my debt, we were ruthless in our refusal. Say it with me: “mer-ci-less.” We took the difficult decision to say no to some things because we had a bigger purpose in mind. TikTok didn’t exist back then, but it’s an excellent example of loud budgeting. No extravagant meals, no luxurious holidays, no shopping sprees (just window shopping). And you know what? Sticking to our budget and firearms paid off.
Now it’s back to loud budgeting. How does this work?
How to Loudly Budget
Taking control of your budget entails more than simply money management. It’s a behavioral shift that also influences how you discuss money with those around you. Loud budgeting is an excellent fit for this behavior modification since it entails being loud about your financial restrictions. And being loud does not imply “explaining” oneself. You don’t have to waste conversation calories arguing why you’re not spending money; simply tell them you’re not doing it.
Also, loud budgeting does not imply declaring, “I don’t have the money to spend.” It’s about you accepting responsibility and declaring, “I’m choosing not to spend.” And, gentlemen, that type of empowerment will hold you accountable as you strive toward your financial objectives. Come now! This is the vitality that we need!
But, Shawn, what if my pals are upset when I tell them I don’t want to spend money on unlimited mimosa breakfasts every weekend this month?
Okay, hold up. First and foremost, it is your money, and no one else can tell you what to spend it on! I applaud you for staying inside your budget. Second, if your buddies just hang around because of how you spend money, it is not a true friendship. Trust me, the genuine ones will remain around.
So, if you have money and a plan for it (oops, that’s what I call a budget!), you can get straight into this popular budgeting practice. Here are five practical approaches to getting started:
1. Understand your budget and financial goals.
You can’t talk about a budget until you actually have one. Begin by documenting all of your monthly income and expenses to determine how much money you have to work with. You may use pen and paper. It will offer you a clear picture of where your money is going and what your financial goals are.
2. Share your goals with everyone you choose.
You don’t have to go on the internet and tell everyone about your loud budgeting. However, if you don’t want to spend money to accommodate your friends’ or family’s plans, you might tell them, “Hey, I’ve got a savings goal I’m working toward,” and let them down gently. They should not interpret your refusal as defensive as long as you are kind.
3. Maintain a cheerful attitude but avoid getting into too much detail.
Again, personal finance is personal. Nobody cares how much money you have, how much you want to save or spend, or why you want to save, spend, or give it away in the manner you like. However, keep your tone upbeat and your response brief.
4. Avoid comparing yourself to others.
As I previously stated, FOMO sets in when your peers spend money on pleasurable activities while you choose not to. And that’s OK. That’s alright! Loud budgeting is about accepting your unique position, not trying to keep up with the Joneses.
5. Provide more economical or free alternatives.
So, are you currently saving money? That’s OK; you can spend your time instead. Get creative and come up with low-cost methods to spend time with your friends and family. You may have half-price happy hour beverages instead of a late supper and drinks, go for a cup of coffee instead of a shopping binge, or go for a stroll with your own snacks instead of purchasing performance tickets. Quality time with your favorite friends is invaluable.
Who is Loud Budgeting for?
Do you have money? Do you spend, save, give money away, and set objectives for it? Then loud budgeting can help you. It’s for anyone who wishes to create healthier financial boundaries, particularly in social circumstances when spending is casually anticipated.
Listen, if your cousin in Memphis invites you to Justin Timberlake’s forthcoming performance, it’s perfectly feasible that you have enough money in your bank account to purchase the tickets. But does it mean you have to, especially if you’re saving for a sparkling new car? No! That’s when loud budgeting comes in handy. You can respectfully decline your cousin’s request since you have other priorities. That is exactly what this movement is about.
What Are Some Examples of Loud Budgeting?
Here are several circumstances in which you may implement loud budgeting:
Planning a night out with friends? Offer to get cocktails or supper, but not both.
Cuddling up with your boo on a date night? Instead than spending money on cinema tickets and food, stream a movie at home.
Catching up with a colleague? Instead of buying lunch, take a walk and get some coffee.
Are you spending meaningful time with your extended family? Visit a museum or a local attraction during free community days or donation-based admission days.
Are you hosting a Bible study or book club? Instead of going to a restaurant, have a potluck at your home.
Are you interested in your favorite artist’s new concert tour? Choose nosebleed seats over front-row tickets.
I’m ready to bet that if you take a moment to think before agreeing to spend money, you’ll be able to come up with other solutions that are less expensive and possibly more fun.
Get started on your budget now.
The advantage of loud budgeting is that you are in complete control. You establish your spending restrictions and decide whether or not to accept certain chances. You could even motivate your friends and family to pay more attention to their finances while you’re doing it!
The more satisfied you are with your financial condition, and the more open you are about what you can (or cannot) afford, the more likely you are to achieve your objectives. Come on, you got this. And if you need a little help along the road.
