Loud Budgeting: Does the Trend Really Work? 

The term “Loud Budgeting” has taken over social media. The concept of loud budgeting means you share how you value spending your money instead of just blindly spending. It doesn’t mean you are restricting yourself, but instead, you are embracing what you value. Loud budgeting is about knowing and voicing how you want to spend your money. Discover how you can make this trend work for you. 

READ: How to Choose the Best Budgeting Method for Your Financial Goals

Using Loud Budgeting to find the quiet

The concept of Loud Budgeting originally became popular on TikTok, but as much as social media can be a place for good tips and tricks, it can also inundate us with advertisements.

Many of us fall into the trap of mindlessly scrolling on social media and seeing products in countless influencer posts, which then leads us to buy the product. While scrolling socials can lead to mindless spending, so can the constant notifications your phone sends. Emails, texts and app notifications never stop. 

If you’ve fallen victim to this unnecessary spending, hit the unsubscribe button at the bottom of the email and send the quick ‘Stop’ text to the numerous numbers that are texting you deals. Many phones also come with the function to mute notifications for a designated time period. Try setting an hour that works for your schedule to silence your phone and step away from the pressure to constantly spend and get started on your loud budget.

Budget with confidence

To get started with this trend, you need to establish your budget so you can fully understand where your money is going. Detailing your budget can be tedious, but an incredibly important exercise. 

“The Paycheck-to-Paycheck Report: The Nonessential Spending Deep Dive Edition,” a collaboration with LendingClub and PYMNTS, found that 2-in-10 consumers living paycheck-to-paycheck say nonessential spending is one reason for their financial crunch. 

Next, think about how you enjoy spending your money. Loud budgeting isn’t trying to make you feel guilty about your spending, but instead support how you want to spend your money. For some that might mean making sure you can eat out and for others that means making sure you can afford specialty olive oil. Neither option should bring guilt, but instead showcase what’s important to you. 

Create a goal

After you outline your expenses, you can create a realistic financial goal. Maybe you want to save for a down payment or another large purchase. Or perhaps you want to set aside some money for a vacation. Your financial goal can be whatever is important to you at the time. Remember, your bank can help you establish a goal by reviewing your budget with you and discussing your hopes and dreams for your future. 

Once your budget and goal are established, practice loud budgeting by sharing your goals out loud with the people in your life. 

Hack your spending 

As you loud budget, you might want to use a few free hacks to help you reach your financial goals. 

• A library card doesn’t cost anything and opens the door to a world of amazing books and programming. 
• Shop your friends’ closet before a trip or fun night out. 
• Going for a walk with friends or using park pickleball courts that are completely free can be great alternatives to expensive dinner and drinks.
• Shop off brand. Grocery stores usually carry their off-brand products that are less expensive than a name brand. 
• Pack your lunch. With loud budgeting, you can still join your coworkers for a break while being confident in your decisions to save money. 

READ: How to Choose the Best Budgeting Method for Your Financial Goals

Lean on your community 

Loud budgeting is all about being transparent with others so they can support you and hold you accountable. Similar to having a workout buddy who reminds you to get out the door and to the gym, loud budgeting gives you accountability with confidence. Saving your money is a badge of honor and something you should be proud as it supports your financial goals. 

You can lean on your bank as an accountability partner too. With online banking, you can create spending alerts as reminders of when you are getting close to the end of your budget, or you can set up automatic transfers to your savings account. Your personal banker can also be available to talk with you about different strategies to support your loud budgeting goals. 

Kris Batch is the Senior Vice President and regional delivery manager with UMB Bank.