Unmute Your Money: The Benefits of Loud Budgeting
- April 26, 2024
KEY TAKEAWAYS
- Loud budgeting: a financial strategy that involves articulating why you might choose not to spend money, even when you have it.
- Benefits of loud budgeting include expanding accountability, improving communication, reducing stress, and finding support.
- Regardless of your personal budgeting style, certified financial counselors can help you eliminate debteliminate debt, build a budget that works for your life, and reach your money milestones.
What is Loud Budgeting?
It’s possible you’re already loud budgeting even if you’ve never heard the (now viral) phrase across TikTok. Do any of these scenarios sound familiar?
- A friend is getting married, and you’re invited to the bachelorette party! The venue is a luxe resort in Hawaii, and you’re responsible for your airfare and lodging.
- A coworker is celebrating a new promotion and invites you to dinner and drinks after work. They opt for a spendy new spot that will likely have you opting for ramen the rest of the week.
- Your neighbor invites you to be their workout partner at a brand-new gym. You’ll enjoy all the best amenities…and the sizeable membership fee that comes with it.
If you’ve ever been in these or similar situations and have openly communicated your rationale not to spend, you’ve exercised loud budgeting.
Loud budgeting is a financial strategy that involves openly and clearly communicating your budgeting goals, plans, and progress. In contrast to more traditional budgeting methods, loud budgeting encourages transparency and accountability.
What are the Benefits of Loud Budgeting?
At its core, loud budgeting serves as a catalyst for financial wellness by fostering better communication, collaboration, and support from others. Here are just a few reasons you might consider adopting this mindset that’s gaining traction:
Expand Accountability
When you openly share your budgeting goals with others, you’re more likely to hold yourself accountable. Knowing your friends are aware of your year-end goal to pay off your student loan for example, provides an extra layer of motivation to stick to your budget and align decisions accordingly.
Deepen Communication
A 2023 study revealed than 60% of Americans don’t talk about money. Loud budgeting looks to disrupt money topics as taboo or shameful. It encourages real talk about priorities, trade-offs, and shared financial goals, leading to better alignment and understanding within families, households, and communities
Reduce Financial Stress
By voicing your financial goals–and working with others on reaching compromises (“I’d love to work out with you…can we check out other gyms offering promotions or budget-friendly memberships?”), loud budgeting can alleviate your stress related to money management. When everyone is on the same page and actively involved in budgeting decisions, the burden of financial responsibility is distributed more evenly.
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Promote Financial Awareness
Loud budgeting encourages regular updates and discussions about financial progress. This heightened awareness of income, expenses, and savings goals can empower you to identify areas where you can improve money management (are you finding that you typically overspend immediately after payday and experience buyer’s remorse, for example?)
Find Support
Embracing loud budgeting can help you feel seen and supported among like-minded individuals who share similar financial goals. Whether it’s through online forums, social media, or local meetup groups, connecting with others who also want to be mindful in their spending provides an outlet for advice and encouragement.
Enhance Goal Setting
When you openly share your budgeting goals with others, it becomes easier to track progress and celebrate milestones together. Whether you’re saving for that trip to the coast, paying off credit card debt, or building an emergency fund, having a supportive network helps you stay motivated and focused.
It’s important to note that there’s no ‘right’ or ‘wrong’ budgeting style. And you shouldn’t view loud budgeting as entirely restrictive—it’s not “don’t spend your money,” it’s “put your financial goals front and center.” While we’ve explored the various benefits of loud budgeting, the key takeaway is that you embrace a proactive approach to managing your finances and investing in your own financial self-carefinancial self-care.
Tara Spicer (She/Her)
Tara Spicer is a writer for GreenPath Financial Wellness, covering everything from budgeting best practices to financial literacy for families. A former book editor and University of Michigan alum, she divides her time between the page and parenting in Seattle, Washington.
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