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By now, most of us have heard the phrase “loud budgeting,” TikTok’s latest financial trend. The idea encourages consumers to take control of their finances and be vocal about making money-conscious decisions, rather than spending money just because they can or without considering their budgets.
According to Certified Financial Planner Chloe Moore, loud budgeting can be a great way to stick to your savings goals, set financial boundaries, and even reduce anxiety around money.
“The concept of loud budgeting can help us move away from the pressures of what should be important and focus on what we personally value,” Moore told Personal Finance Insider.
Here are 3 ways Moore says you can incorporate loud budgeting into your finances:
1. Set financial boundaries
Whatever your budget is for entertainment, eating out, or clothes shopping, set it and stick to it.
“Once you set your budget, don’t get sidetracked into spending by sales, ads, or fashion trends,” Moore advises. “This might mean you have to go right home after work, unsubscribe from sales emails and text alerts, or even delete payment information that makes it easier to spend.”
A report by online lender SoFi found that 56% of consumers said that more than half of their online purchases are spontaneous. To counteract the powerful draw of online shopping, Moore recommends that you “create a payment buffer that makes it harder to spend money.”
2. Be intentional about what you say yes to
When it comes to your money, you have to decide what is really important to you.
“Being intentional about what you say yes to and learning how to say no can help you save towards your personal goals while also increasing your overall happiness,” says Moore. “When considering the life you’ve created, are you really spending time, money, and energy on what matters the most to you? Or are you blindly purchasing items to fill a void, impress others, or keep up?”
Being thoughtful about your money can also help curb the anxiety that often comes with handling personal finances. When you are intentional with your spending, you know where your money is going and that you can afford it so there are no surprises.
This applies on the savings side, as well; because you are being intentional about putting aside money in a high-yield savings account or other savings vehicle, you will not find yourself running out of money or not being able to respond to a financial emergency.
3. Learn the difference between not having money and not wanting to spend money
Instead of thinking “I don’t have enough money,” frame it as, “I don’t want to spend money.” This can work in numerous situations, such as if friends are going out for drinks after work. Instead of saying you can’t afford it, you can say, “I have spent my entertainment budget for the month and I don’t want to overspend.”
This can also open up conversations about money and financial goals. “Loud budgeting can empower you to talk about money with friends and support each other in developing healthy spending habits,” Moore explains. “If your friends see that you’re making changes for the better and those changes are positively impacting you, they may be inspired to follow in your footsteps.”