Weekly Deals: Use Loud Budgeting to Reduce Expenses, Save $$$

By LaTINA EMERSON, Special to The Weekly

Was one of your New Year’s resolutions to improve your finances and save more money? Then consider trying out a new social media trend called “loud budgeting.”

Loud budgeting is a money-saving technique that involves being honest with your family and friends about your financial goals and why you’re opting out of social gatherings that put your financial goals in jeopardy. These gatherings could vary from going out to dinner or traveling out of town for a group trip or destination wedding, according to NerdWallet.

This trend, which went viral on TikTok in early 2024, empowers people to speak up about their financial goals, CNBC Select reports. It enables individuals to save money and reach their goals by staying focused on their fiscal priorities.

While setting financial boundaries isn’t new, this trend encourages people to open up about their financial goals and to not feel guilty or embarrassed about aligning their spending with the goals they want to reach, NerdWallet explains.

Many people find it challenging to say no to social invitations or pressures from their family and friends to spend money, so they reluctantly accept the invitation and the resulting financial consequences, according to CNBC Select. Loud budgeting is a behavior change that affects how you talk about money with the people around you, according to Ramsey Solutions.

Especially as the cost of living continues to rise, it’s important to keep your long-term financial objectives in mind and stay committed to those goals. To remain on track, some personal finance experts recommend establishing different categories for your financial goals, such as building an emergency fund, saving for a down payment or getting out of debt, and then setting money aside separately for each goal.

Budgeting apps can also be helpful for tracking your spending. CNBC Select recommends Goodbudget as a budgeting app for beginners and YNAB as a more advanced option.

Still, balance is key. Experts note that it’s essential to strike a balance between saving money and doing activities that you enjoy. Rejecting all social invitations can eventually take a toll on you socially and emotionally because these activities are a great way to create memories with family and friends, according to CNBC Select. While working toward your financial goals, find ways to connect with loved ones that don’t involve spending a lot of money, such as cooking a meal or taking a walk.

Want to get started with loud budgeting? NerdWallet and Ramsey Solutions offer some tips:

Address your emotions: A person’s feelings about money can be shaped by their personal and cultural background and other factors. For instance, in some cultures, younger generations are expected to provide money to their elders, but this can cause conflict and put a strain on finances.

Find an accountability partner: Share your financial goals with someone you trust and who will hold you accountable for reaching your goals. It’s important to note that you don’t have to divulge personal details to anyone, such as how much money you have or exactly how much you want to save or spend.

Establish your financial goals: Track your income and expenses for a month so you’ll know where your money is going and then determine your money goals. Set goals based on the type of lifestyle that you want to live. Determine your top priorities, such as buying a home or taking vacations.

Don’t compare yourself to others: Even though it’s natural to feel like you’re missing out when family and friends are spending money on fun, exciting things, be comfortable with your own situation and don’t try to keep up with others.

Suggest cheaper or free activities: If you’re focused on your money goals but still want to foster relationships with family and friends, recommend ways to spend quality time that don’t involve spending a lot of money. Maybe you could grab a cup of coffee instead of going out for dinner and drinks or take a walk instead of buying tickets to a pricey play or concert.