From skipping expensive dinners with friends to passing on a weekend trip, loud budgeting encourages open, honest conversations about money with friends and family
Discussing personal finance is often considered a taboo subject, leading many to endure financial stress in silence while maintaining a façade of wellbeing. However, the emerging trend of loud budgeting is breaking this cycle of secrecy by encouraging candid discussions about money matters.
Opting out of a costly dinner with friends or foregoing a weekend getaway, loud budgeting promotes frank conversations about finances with friends and family. It’s all about prioritising your goals and savings over feelings of guilt and succumbing to social pressure. Zoe Brett, a financial planner at EQ Investors, has shed light on the essence of loud budgeting, its growing appeal, and tips for incorporating it into daily life.
“Loud budgeting is really just about being open and honest with people about your finances,” explains Brett. “So, rather than trying to keep up with the Joneses and pay for dinner at that trendy restaurant or the latest outfits, just because your friends or your family are, you are just honest and say actually, I don’t want to spend my money on that, I’m budgeting.” The advice comes after news that thousands of Brits are set to get a letter from HMRC after a drastic new tax rule comes into force.
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Brett says people feeling “fed up” is why the trend is gaining popularity as of late. “It’s so hard for people to get onto the housing ladder these days, and everyone’s been really impacted by the cost of living and are finding it increasingly difficult keeping up with certain lifestyles,” she acknowledges.
“Everything just feels very expensive and I think people are just a little bit fed up of feeling broke all the time.” Brett has also observed an uptick in social media chatter about living paycheck to paycheck, even among those earning six-figure salaries.
“I think a lot of people, especially Gen Z, often feel like there is no future for them so they overspend, which has created a little bubble of people who are now trying to unwind that and be a bit more fiscally responsible,” Brett notes. One immediate benefit of loud budgeting is supposedly its positive impact on mental health.
“In the short term, I think that it is actually pretty good for your mental health to stop having to struggle silently to try and keep up with your mates,” Brett says. “Once you just take that first step, it builds momentum.” Over time, this mindset can contribute to building financial security.
That said, Brett has provided some practical tips for putting the loud budgeting trend into practice. The first is about “ripping the band-aid off” and getting over any reluctance about talking about money.
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“The first conversation is always the hardest, and it might be super awkward, but then once you’ve ripped the band aid off, you will realise that it’s not actually as scary as it seemed,” says Brett. She also notes its important to speak your financial goals into existence. and sharing your objectives with friends can even help maintain your accountability.
“If you’ve got the right people around you, then they should honour that and support you, and may suggest things that are cheaper,” she says. Taking the initiative to advocate for and propose cheaper activities and restaurants is another way to practice loud budgeting.
“Rather than waiting for someone to invite you to something, suggest something to them that is within your budget such as drinks in the park, or cooking a meal at home or going to a free gallery.”
Just as much as emphasising your goals and struggles, it’s also important to celebrate your financial achievements. “If you’ve done amazing and have really under-spent one month, remember to give yourself a pat on the back.”
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