Money can often be something of a taboo subject, so many of us stay tight-lipped even if we’re desperate to say something.
But a new trend, termed “loud budgeting”, suggests that attitudes could be changing.
This trend, which is growing in popularity on platforms such as TikTok, encourages open discussion about your finances and why you might choose not to spend money.
For example, imagine you have a very clear financial goal in mind, such as paying off your credit card debt, saving for your summer holiday or putting money aside for a deposit on a house.
Then one day you’re invited out to an expensive restaurant, or to go to a hen or stag do abroad for several days.
By embracing loud budgeting, you can say no to these expensive offers, and simply explain that it’s because you want to use this money to meet other priorities.
This is quite different to saying you don’t have the money in your account, so there’s no feeling of shame about not being able to afford something.
Instead, it’s explaining your reasoning for not spending on certain things, and being transparent about your boundaries and financial goals.
By being open in this way, you can confidently and positively say no, hopefully without feeling judged by your friends.
Loud budgeting has many advantages that can enable you to stay on course to achieve your objectives.
Firstly, sharing your goals with others can help you keep your goals in mind and hold yourself accountable. As a result, you can stay motivated and be less likely to spend money on impulse purchases.
Secondly, if your friends are aware of your aims and ambitions, you’ll be less likely to face peer pressure and be more confident saying “no”.
Finally, being open and transparent with your social group could encourage others to do the same, and you may find yourself with a regular source of encouragement, advice, support and motivation.
But of course, loud budgeting can come with some drawbacks. For instance, there’s no guarantee that you won’t receive a degree of judgement and negativity from others.
And if you’re being open on a digital platform such as TikTok, it’s really important that you don’t reveal sensitive details.
Even if you think loud budgeting is a good idea, you should think about the platform and the audience you’re speaking to before sharing any personal financial information.
If you have any questions about how to manage your money so you can put yourself on course to achieve your goals, please get in touch with our friendly team of financial planners.
We can help you ensure your money is working hard for you, so you can feel confident that your long-term objectives remain firmly in sight.
Contact us today.