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What is loud budgeting?

Loud budgeting is a new trend that focuses on being more transparent and honest about your money, setting boundaries, not being afraid to say “no” when something doesn’t fit into your budget (or when you just don’t want to spend money on something).

This is right up my alley.

I don’t know who decided that money should be a taboo topic.

I don’t know who lied and told people that they shouldn’t discuss money.

What I do know is that it backfired.

Staying hush-hush about money is, I believe, partly to blame for why so many people don’t have a clue on how to manage it.

Some parents don’t discuss it with their kids. Many schools don’t teach it. Friends don’t talk about it, and even some spouses don’t want to touch it. But we talk about everything else, so why not money?

However, thanks to loud budgeting, that is slowly changing.

How to “loud budget” 

As I’ve said before in several videos, it’s so important to own your financial choices – and this is exactly what loud budgeting encourages.

It’s no longer about keeping up with the Joneses or going along with the group at the expense of your financial goals. And it’s no longer about turning down invites and using excuses like “I’m tired” or “busy,” when the truth is, you have other priorities.

It’s about being loud and proud and saying, “I’m not doing ABCD because of XYZ.”

Now obviously, no is a complete sentence, so you’re under absolutely no obligation to give anyone an explanation for why you don’t want to spend money. Nor do you have to reveal the nitty-gritty details about your financial life. This is entirely up to you.

Even so, I still feel that embracing ‘loud budgeting’ is a fantastic concept because so many people fall into the trap of trying to portray a lifestyle with more resources than they actually have.

There’s sometimes a sense of shame associated with financial limitation, in which case some people won’t decline invitations for fear of being looked at as cheap or broke.

What these people don’t realize, though, is that being vocal about your financial choices can be empowering. It allows you to own your decisions and prioritize what matters most to you. And by openly discussing your budgeting strategies, you might inspire others to take a closer look at their own situation and make similar changes.

So, the bottom line, I guess, is that loud budgeting doesn’t have to be financial TMI. Since you’re in control, you decide what you’re comfortable sharing and how much. For example, you might say, “Thanks for inviting me to the concert, but I won’t be attending because I’m prioritizing paying off debt,” and leave it at that. You don’t have to reveal what type of debt you’re paying or how much you owe. That’s no one’s business.

Not only can being honest empower you and possibly inspire others to do the same, but it can also get certain types of people off your back. There are some individuals who won’t take ‘no’ for an answer when you say you’re too tired or busy to do something. But the moment you mention money-especially if they’re uncomfortable discussing finances-they might back off. 

So, if you decide to loud budget, here are a few tips…

• Be specific without giving too many details.
• Speak confidently about your goals and plans.
• Stick to your guns. Don’t let people change your mind. Even if you have money for something, you don’t have to spend it if you don’t want to.
• Also, rather than let others always do the inviting, from time to time take the initiative and suggest activities. If you have a friend that’s always inviting you to the movies, occasionally invite them over to stream something.

Loud Budgeting FAQ

What is loud budgeting?

Loud budgeting is openly prioritizing financial goals over social spending. It involves declining social invitations that could derail your budget, and confidently explaining why. While it may feel challenging, it empowers you to focus on your long-term financial well-being.

How do you loud budget?

Start by setting clear savings objectives and tracking expenses. When faced with social invitations that could strain your budget, politely decline and explain your financial priorities. Balance is key—allocate funds for both savings and enjoyable experiences. Organize your finances using tools like separate savings accounts for different goals. Staying committed to your financial goals (and openly communicating them) can increase financial confidence and inspire others to do the same.