Time to read : 4 Minutes
Budgeting isn’t something we typically shout about from the rooftops. But a new trend known as ‘loud budgeting’ encourages a more vocal approach to money management.
‘Loud budgeting’ was coined by comedian and writer, Lukas Battle, who dubbed it as “more chic” than buying into the quiet luxury trend, where people try to look wealthy using minimal, high-end style.
The approach has gained popularity on social media over the past year. Essentially, it refers to “loudly” claiming your financial goals and budgeting preferences, rather than keeping them to yourself.
What is loud budgeting?
Traditionally, money has been one of society’s biggest taboos. You might have grown up being taught it was rude to ask how much someone earned, or how much something cost.
Loud budgeting instead encourages a more upfront approach to our finances. It's not about broadcasting your salary to everyone you meet. Instead, it's being open about your financial goals, what you’re choosing to spend on, and perhaps why certain decisions don’t align with your financial priorities.
Battle summed up loud budgeting in one simple line: “It’s not I don't have enough, it’s I don’t want to spend.”
Why loud budgeting works
In many ways, loud budgeting is about financial boundaries. Rather than getting swept up into an expensive trip when you’re trying to be financially prudent, or ending up at a pricier restaurant than you’re comfortable with, loud budgeting encourages open and honest communication about your financial decisions.
On top of this, loud budgeting has a raft of other benefits.
Being upfront about your goals, verbalising them and communicating them to people you trust can help hold you accountable. Rather than making loose plans in your head and not following through, you’re prompted to commit to them by bringing others along on your journey.
You may also find that loud budgeting leads to a sense of community. If you’re verbalising your goals and being honest about why you’re making certain financial choices, others might be inspired by you and want to do the same. You might find yourself holding one another accountable to being better with money. Together you can find ways to spend less and save more, and get financially confident together.
Psychologically, verbalising your goals, whether to others or just to yourself, can help you engage in positive self talk, and help rewire your money mindset to become one of financial confidence.
But before you leap into loud budgeting, consider the following:
Privacy
While the money taboo is gradually dissolving as more and more people opt for financial transparency, some situations still require discretion. Only share your financial situation with people you trust, and be careful if doing so online or in wider groups.
Judgement
For some people, money is a sensitive topic. You may find people in your life find it confronting to hear you talk about money so openly. This could cause conflict or a perceived sense of judgment from others around you – if you’re not on the same page about financial transparency.
Yes, but… in some situations, this tension may open up healthy conversations for mutual growth, and this can be a good thing.
Tall poppy syndrome
In Australian culture, people who do well and stand out from the pack are often cut down like a ‘tall poppy’ and brought back into line with everyone else.
As you progress with your financial journey, you may face judgement from other people as a result of tall poppy syndrome. While it’s not necessarily something you can control – and it doesn’t mean you should stop pursuing your financial aspirations – it’s something to keep in mind.
Be aware: loud budgeting involves confronting an age-old societal taboo, and can evoke some unexpected tensions.
Tips to get started with loud budgeting
Sold on the idea and ready to start being louder about your financial intentions? Here are my top tips:
Start small and test the concept
It might be your first time telling other people about your financial priorities, so ease yourself in. Start with gentle conversations with people you trust, and see how loud budgeting impacts your financial confidence. It’s a great way to see if loud budgeting is right for you.
Set clear goals
Double down on the psychological benefits of loud budgeting and set yourself some clear goals. Choosing goals that are meaningful to you can help you stay on track.
Remember goals should also be realistic and if it helps you can always break down bigger or more long-term goals into smaller goals.
Know your why
Loud budgeting may involve making some lifestyle sacrifices to help you funnel more money into your financial goals. Getting clear on your ‘why’ will help you withstand resistance, and shut out the opinions of others.
Knowing your objectives – and circling back to them when need be – can also help you achieve your financial goals.
Bottom line
Loud budgeting is a great way to help you build and stick to financial boundaries and prioritise your financial future. Just be cautious when opening up to others about money, as it can be a sensitive topic. It’s important to break down the taboo, but remember it can take time.
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Financial disclaimer
The information contained on this web page is of general nature only and has been prepared without taking into consideration your objectives, needs and financial situation. You should check with a financial professional before making any decisions. Any opinions expressed within an article are those of the author and do not specifically reflect the views of Compare Club Australia Pty Ltd.
