Why 'Loud Budgeting' Has Gone Viral

If you've ever felt like it's easier to talk about sex, politics, religion, or pretty much anything that's not money, you're not alone. An Empower survey last year found that 62% of Americans don't talk about money. Sadly, many of us didn't learn about personal finances when we were young. Throw in money taboos, and it's not surprising that a lot of people are suffering in silence.

Enter loud budgeting. Gone are the days when money gets shoved into a dark corner with the distant hope it might somehow flourish in a mushroom-like manner if we just ignore it hard enough. Money talk is shaking off the stigma. Whisper it, but it's even becoming cool.

What is loud budgeting?

According to TikToker Lukas Battle, loud budgeting is the opposite of quiet luxury. "It's not 'I don't have enough,' it's 'I don't want to spend,'" he said. Influencers on social media are telling their followers that it's OK to talk about their finances. More than that, it's OK to say that an expensive night out or luxury vacation isn't how you want to spend your money.

Rising living costs have put pressure on many people's bank accounts in recent years. Credit card debt levels are increasing. Savings account balances are falling. And the message that's starting to go viral is that you don't have to splurge to be trendy. You can budget your time and money according to the things that matter to you.

Getting started with loud budgeting

Budgeting loudly is not about announcing the details of your income, savings, and investments on social media. In fact, that's one of the big no-nos when it comes to money talk. It's one thing to set clear financial boundaries, it's quite another to advertise your finances to potential scammers and online thieves.

If you're interested in loud budgeting, here are some steps to take.

1. Get up close and personal with your money

It's hard to set specific targets if you don't have a clear financial picture. Go back through your recent bank statements or use a budgeting app to see where your money goes each month. How much are you spending in comparison to what you earn? Do you have any money in your savings account to tide you over if things go wrong? Are there spending areas that surprised you?

Once you've got an idea of what you're doing with your cash, you can start to think about what changes you might make.

2. Set financial goals

The most powerful thing you can do when setting goals is to be clear on your 'why.' If you want to pay down debt, imagine how it will feel to be debt free. If you're saving a down payment for a house, put a picture of your dream home somewhere you'll see it every day. That visualization can help you stay motivated.

The more specific and achievable you can make your goals, the better. Saying, "I want to save more for retirement" is vague. Instead, you might say, "I will put $50 a week into my retirement account because I want to have the freedom to stop working when I am 65." You could automate the transfer from your checking account and plan a small monthly celebration to reward yourself.

3. Share, support, and celebrate

Talking to your friends about money could mean you encourage one another or even celebrate when you hit specific milestones. It can be empowering. Let's say you've allocated 15% of your income to entertainment. It's OK to be upfront and say you can't afford a big night out or fancy dinner if that's not how you want to spend your fun money.

Speaking personally, some of my friends have been relieved when I've suggested low-cost or free alternative activities. They also have savings goals, debts to pay off, and financial plans they want to keep. Telling people I have other financial priorities has opened the door to conversations about budgeting, saving, and money worries.

It's up to you how far you go. Just be aware that tone matters too. Money can be a sensitive topic, so it's important not to sound judgemental, boastful, or critical of other people's choices. This is about communicating your goals and boundaries in a way that invites the people close to you to support and even join in.

Loud budgeting is one way to cure money shame

A lot of people feel shame when they think about money. They might worry they don't have enough of it. Or too much. Perhaps they don't feel they have the skills they need to manage it. Or don't want to tell people they are in debt. For others, money shame comes from experiences in childhood.

The consequences of money shame can be serious. In a recent survey from the American Psychological Association, 63% of people said money was a major stressor in their lives. It can lead to overspending, exacerbate debt issues, damage relationships, and be a contributing factor to depression and even suicide.

Taking the stigma out of money talk can be transformative. It's the first step on a journey to understanding both your relationship with money and ways that you might change it. Loud budgeting is one way to do that, and for that reason alone, I hope it's a trend that sticks with us.