{"id":3986,"date":"2024-03-18T15:02:33","date_gmt":"2024-03-18T19:02:33","guid":{"rendered":"https:\/\/www.skypointfcu.com\/wph\/workarea\/?p=3986"},"modified":"2024-03-18T15:10:59","modified_gmt":"2024-03-18T19:10:59","slug":"4-ways-to-turn-the-loud-budgeting-trend-into-a-habit","status":"publish","type":"post","link":"https:\/\/www.skypointfcu.com\/wph\/workarea\/blog\/4-ways-to-turn-the-loud-budgeting-trend-into-a-habit\/","title":{"rendered":"4 Ways to Turn the \u2018Loud Budgeting\u2019 Trend Into a Habit"},"content":{"rendered":"\n

Setting financial boundaries<\/a> isn\u2019t a new concept, but there\u2019s a new name for it. \u201cLoud budgeting\u201d is a viral money trend that\u2019s encouraging people to be more open about their finances.<\/p>\n\n\n\n

TikTok content creator Lukas Battle is credited with popularizing the term. In one cheeky video, Battle gives an example of loud budgeting: Saying \u201cSorry, can\u2019t go out to dinner, I\u2019ve got $7 a day to live on.\u201d<\/p>\n\n\n\n

And while Battle\u2019s example might be funny, practicing financial transparency is resonating with many people who are feeling financial strain.<\/p>\n\n\n\n

What is loud budgeting?<\/strong><\/p>\n\n\n\n

This approach is about looping others into your financial goals<\/a> and combating money shame.<\/p>\n\n\n\n

\u201cThis means making better spending decisions that support your goals, and being honest with friends and family about why you are opting out of gatherings that require you to spend, such as going out to dinner or going away for a weekend trip,\u201d Andrea Woroch said in an email. Woroch is a personal finance writer and consumer savings expert who has appeared on \u201cGood Morning America\u201d and other TV news shows.<\/p>\n\n\n\n

It\u2019s also about aligning how you spend your money with the goals you want to achieve, which can be empowering.<\/p>\n\n\n\n

You can say, \u201cI don\u2019t value this enough to spend money on this because I\u2019m saving money for a down payment, or \u2026 I\u2019d rather not spend money on this because I\u2019m saving for a vacation,\u201d Giovanna \u201cGigi\u201d Gonzalez says. \u201cIt gives you the power back, and it shows that you have clarity on your financial goals.\u201d Gonzalez is the author of the personal finance book \u201cCultura & Cash\u201d and a TikTok content creator.<\/p>\n\n\n\n

Loud budgeting can help you save more, find support<\/strong><\/p>\n\n\n\n

Strengthening your boundary-setting and communication skills, and holding yourself accountable, can help you save more money to put toward your goals.<\/p>\n\n\n\n

\u201cHaving money goals is something to be proud of and something that you should really communicate to your friends and family, so they know where you stand financially, because when you don\u2019t, people just assume that the money you have is a free-for-all,\u201d Gonzalez said.<\/p>\n\n\n\n

Being transparent about money may also open up support. \u201cSpeaking openly about your finances leads to more candid conversations about money with others who may have gone through a similar struggle, and [who] can offer advice or tips on how they improved their own financial situation,\u201d Woroch said.<\/p>\n\n\n\n

How to make this a habit, not a passing trend<\/strong><\/p>\n\n\n\n

Some ways to build loud budgeting into a regular habit include:<\/p>\n\n\n\n

1. Address your feelings about money<\/strong><\/p>\n\n\n\n

The emotions you have tied to money can affect your financial wellness, and how you feel about money can be shaped by your cultural background and other factors, like generational trauma<\/a>.<\/p>\n\n\n\n

For example, Gonzalez says, \u201cI think because in my culture, the Latino culture, it\u2019s very much expected that you just provide money \u2026 it\u2019s very much seen as an obligation that you have to your elders, for the sacrifices that they put in so that you\u2019re able to now have a better life.\u201d And familial expectations about money can cause conflict and strain your finances.<\/p>\n\n\n\n

Addressing your feelings about money with a professional like a financial therapist<\/a> can improve your ability to set money boundaries and communicate them.<\/p>\n\n\n\n

2. Get an accountability partner<\/strong><\/p>\n\n\n\n

Share your financial goals with someone you trust and who will help to hold you accountable.<\/p>\n\n\n\n

\u201cIs there someone else you know who recently proclaimed their loud budgeting efforts on social media or in your circle of friends?\u201d Woroch said. \u201cReach out to share your goals and support each other by holding each other accountable with monthly check-ins or texts when you\u2019re feeling like spending.\u201d<\/p>\n\n\n\n

3. Set clear goals<\/strong><\/p>\n\n\n\n

Think about the kind of life you want to live and set money goals accordingly.<\/p>\n\n\n\n

When Gonzalez wanted to travel the world, she bought a map and put it where she could see it every day. \u201cBut for somebody else, maybe their big dream is to buy their own home<\/a>,\u201d she says. \u201cSo I tell people to keep the motivation and momentum going \u2026 make your lock screen [a picture of] your dream home.\u201d<\/p>\n\n\n\n

Keep your money goals front and center as you navigate the short-term discomfort that might come with having to say \u201cno\u201d to things that don\u2019t align with them.<\/p>\n\n\n\n

4. Show up in other ways<\/strong><\/p>\n\n\n\n

You can make loud budgeting a habit and still show up for the people you care about.<\/p>\n\n\n\n

Gonzalez suggests finding alternative ways to offer your support. \u201cI\u2019ve had a friend ask me to [co-sign] for his car, and I told him, \u2018I love you but that\u2019s a big commitment and I don\u2019t feel comfortable,\u2019\u201d she said. \u201cAnd I explained to him the reasons why: \u2018If you were to default on this, It falls on me or my credit\u2019.\u201d She offered to help her friend research more affordable car options instead.<\/p>\n\n\n\n

Supporting your loved ones in nonmonetary ways might also look like cooking or cleaning for them, babysitting or helping in their job search.<\/p>\n\n\n\n

More From NerdWallet<\/strong><\/p>\n\n\n\n