Episode 215 - The Rise of Loud Budgeting
In recent times, a new financial trend has taken the world by storm - loud budgeting. With its increasing popularity and presence on social media platforms, more and more individuals are embracing this technique to be more intentional with their finances. The practice of loud budgeting aims to help people save money, pay off debt, and reduce financial stress. In this blog post, we will explore what loud budgeting is all about, its benefits, and how you can incorporate it into your financial journey.
What is Loud Budgeting?
Loud budgeting is a financial strategy that encourages individuals to be vocal about their money aspirations and spending choices. It involves clearly communicating why you may choose not to spend money, even if you have the means to do so. By vocalizing your money plans, you hold yourself accountable and let others in on your financial goals. This level of transparency can help you stick to your budget without feeling guilty or experiencing fear of missing out (FOMO)
Embracing Financial Accountability:
One of the key advantages of loud budgeting is the empowerment it brings when it comes to your finances. By stating your priorities and making intentional choices about how you spend your money, you can avoid being swayed by societal pressures or peer influence. Loud budgeting allows you to stand firm in your financial decisions, even when faced with external opinions that may not align with your goals.
The Importance of a Supportive Network:
While loud budgeting can be empowering, it is crucial to acknowledge that not everyone will support your financial journey. Some friends or family members may not fully understand or appreciate your commitment to budgeting and may question or discourage your choices. However, finding like-minded individuals who share your financial goals can provide invaluable support and guidance along the way. Joining accountability groups or connecting with online communities like Roots of Personal Finance can ensure you have a network of people cheering you on and offering advice to help you reach your financial milestones.
Keeping the Momentum:
As with any trend, there is a risk of loud budgeting losing its popularity over time. It is important to remember that financial management should be a long-term commitment, regardless of the current trend. While it may be exciting to jump on the bandwagon, true success lies in staying dedicated to your financial goals even when others have moved on to the next trend. Surround yourself with like-minded individuals and seek accountability to ensure you stay on track.
Conclusion:
Loud budgeting has emerged as a powerful tool to take control of your finances and build a more intentional relationship with money. By vocalizing your financial aspirations and making deliberate choices, you can create a financial path that aligns with your goals and values. Remember, finding a supportive network and staying committed to your journey is vital for long-term success. So, whether you choose to be loud or quietly embrace budgeting, prioritize your financial well-being and embark on a journey of financial freedom.
Episode Transcript:
Brad:
Loud budgeting is gaining a huge amount of popularity and hit social media by storm, especially here in the new year. Now, people are using this technique to be more intentional with their finances, helping them, hopefully, to save more money, pay off even more debt and cut back a lot on their financial stress. So what is this latest financial trend called loud budgeting and how can you use it to help you and your finances? We're going to be sharing all of this on today's show. Stay tuned.
Speaker 2:
You're listening to the Debt Free Dad podcast with Brad Nelson. Brad and his co-hosts experienced the anxiety of living paycheck to paycheck before learning the fundamentals of financial success. They are now on a mission to empower regular people to pay off their debt for good and enjoy happier, less stressful lives. Keep listening for inspirational interviews, tips, tricks and practical advice to gain financial freedom.
Brad:
Hey, hey, hey. How is everyone doing today? I am Brad Nelson, founder of Debt Free Dad. I paid off about $45,000 of debt and have been debt free now for more than 10 years. I've also helped thousands of other people save and pay off tens of millions of dollars.
Amber:
And I'm Amber Taylor and I have paid off over $54,000 in just 20 months and have been debt free outside of my mortgage for over six years.
Chris:
And my name is Chris Hawkins. My wife and I paid off almost $100,000 in debt and we became a financial coach. I have taught high school students how to manage their money and I enjoy playing the Build your Net Worth game.
Ryan:
And my name is Ryan. I paid off $160,000 over eight years and we've been debt free now going on almost four years now, outside my mortgage.
Brad:
So, as we said in the intro, today we're going to be talking all about loud budgeting and, if you want to take this a step further, we've got an awesome budgeting tool called the Debt Freedom Planner that we've got thousands of people using over the years, and I'll be sharing more information about that coming up later in the show. So, guys, this term loud budgeting has gained some huge popularity and some steam. In fact, Chris, you shared an article about it. Chris was traveling here for a little while and was not on the show for a bit, but had shared this article, and then Amber started sharing some information about loud budgeting that she was seeing on TikTok. What have you guys been seeing? Just a little bit, I want to share one of the I guess one of the TikToks that's kind of gone viral, so that's kind of really gotten a lot of people on this bandwagon. We're going to play that for you guys here in just a second, but just from your initial take, have you guys seen a lot of this already?
Amber:
Well, I'm seeing just younger and younger people just getting excited about budgeting.
Brad:
I'm like yes, yeah which is cool, which is?
Amber:
cool.
Chris:
And I haven't seen too much. I did see the one article and I thought, hey, let me share it with everybody. But the one thing that stuck out about the article and again going back to the young people is we had an episode here not too long ago where we talked about the mindset of young people and how we thought it might be shifting a little bit. So that's why I thought this was kind of cool to see that young people are taking a different approach.
Brad:
Yeah, Ryan, why don't you? Let's play this TikTok real quick. This is by a TikTok user, by LucasBattle, and we're going to play this for you because this is the one that's kind of gained the most steam. A lot of creators are now creating more content Off of this video. We just want to kind of give you a listen, to kind of give you a little bit of a backstory behind this whole thing today.
Tiktok User:
Loud budgeting is a new concept I'm introducing for 2024. It's the opposite of quiet luxury, but if you know any rich people People you know that they hate spending money. It's almost more chic, more stylish, more of a flex. Loud budgeting has the same feeling as sneaking candy into a movie theater. You feel like you got away with something. You feel like you're on an adventure. You feel like you're coming out of the situation winning. It's not I don't have enough, it's I don't wanna spend. So it's like if your friend texts you I wanna hang out, you say I don't wanna spend gas money on coming to you to hear you talk about your ex for three hours. Let's send a message to corporations about the national inflation level. Let's take a stand. Also, while quiet luxury is about idolizing celebrities, loud budgeting is about the everyday person, the average Joe. Celebrities are entertainers. They're here to entertain us. They're clowns, really, and think about it. Medieval peasants didn't ask the jester with a bum knee for a photo after their courtroom fart. So I don't think so. So 2024 is all about loud budgeting. Okay, put that dollar in your pocket. Choose a stock that's gonna rock it.
Brad:
There's a lot of things in there that I liked. That he said especially about you know the whole rich people and not spending money, and it's now become more of a flex, so to speak, to be more frugal, to really be mindful and intentional with your money. I think, from coming from a young person, from a younger generation, I think that's a really, really good message. I think more of that stuff needs to be talked about, especially when it comes to social media. Yeah, for me.
Chris:
I think the key thing is he's encouraging no to be cool. Right the word no, which everybody thinks oh, budgeting's bad because you're gonna have to tell yourself no. Well, now what he's basically saying is I wanna be cool saying no. That's the big takeaway of that and the fact that I mean wealthy people. It's not that they hate spending money. They're just much more purposeful about how they spend their money and, again, budgeting is a big part of that.
Brad:
Yeah, I think I would agree 100%. Is that saying no? I think maybe that's why it's gaining such popularity, because again we've had plenty of statistics on this show talking about FOMO, how social media creates a lot of fear of missing out, how social media actually encourages us to spend more money than we have and kind of keep up with people. And I think for the younger generation, especially if they're on TikTok and they're seeing this message now of oh I mean I shouldn't be embarrassed if I wanna be intentional with my finances and it isn't cheap if I say no, it isn't cheap if I don't wanna spend my money on stupid things like my friends or family are doing, like that's actually something good, that's actually standing up for my financial life and my life in general and saying no, I'm not gonna participate in that and instead of saying I'm being cheap, I'm just not wanting to spend.
Amber:
I mean, I think it's great, I think being loud about it's awesome. But there's also going to be that friend and I've had the friend like, oh, you're doing that budgeting thing, like when I was getting out of debt. It's like, oh, that budget thing, why can't you come out for dinner, that budget thing. So like, yes, it's loud, but is everybody going to jump on board? Because you're still going to have those naysayers that you're still going to be like, oh, I feel bad now for not going out with them you know what I mean? Like you're still, you got to still stand your ground, like if you're going to do it, you got to, just you got to do it.
Brad:
Yeah, and I think this is where people need to understand. It's like it's easy to get on board with something like this when you're motivated right, when, like you're, you're excited to change your financial life, you're excited to make changes. But the reality is we all know that that motivation comes and goes right and it's so easy also to go back to that Okay, I'll just do it right, because it's the discipline, it's the consistency and sticking with something like this that's the hard part. So having that accountability is huge, you know, of sticking with this long enough. You know, and I think we've all struggled with that I mean, I think we've talked about that a lot on the show, on this podcast is, you know, I can't tell you how many times I started and stopped before I was successful, and I kind of joke around about saying it, but I've kind of failed my way out of debt Eventually, you know, you just you just try so many times until you, until you almost get there right, and but it's that consistency that's the key. I think that a lot of people need to understand. I want to share just this real quick part of this article as well. This is an article on CNET. I was titled and written, while I should say it's written by Dashiya Mildan and it's loud. Budgeting is the TikTok finance trend that pushes back on overspending, and experts love it, so it says what is loud budgeting. Again, this is just a little small part of this article. Loud budgeting is a financial strategy that puts your money aspirations front and center for friends and family to see, it involves clearly vocalizing why you might choose not to spend money even if you have it. This level of accountability can help you stick to a budget without feeling guilty or experiencing fear of missing out or FOMO. It represents a move towards transparency and community and financial management, says Shana Martin, ceo of Seedley Coach, and that's crucial for demystifying budgeting, debt repayment and saving. She said You're not only holding yourself accountable by vocalizing your money plans, but you're also letting others in on your financial goals, which can encourage them to cheer you on. Are they, though? That's the question, amber? Yeah, are they? The people you share your money goals with may have tips to help you reach your goals faster, but they may also have tips to help you ruin those goals as well. And when friends and family members clearly understand your financial priorities, they may even plan budget friendly outings to ensure you can join in. You might even encourage them to set a similar financial goal, so they are very optimistic, I think.
Ryan:
Yeah. So, like I'm, when we were preparing for this, I mean I was all good until that part, and that part was really hard for me to swallow because just for me personally- I mean we lost friends going through this. I wouldn't say we became enemies, but we were not close. We had a lot of people that thought we were to this day, think we're crazy and just have no Concept of what we're doing and don't so, don't support it and I'll just I'll throw myself out there. I mean the universe, like family members will clearly understand. Like my brother, brad, told me Ten plus years ago, I'm gonna get out of debt. I was like you're stupid, like this, the dumbest thing I've ever heard. Like that's, everybody has debt. I would love that to paint this rosy picture that just everyone's gonna gather around you and support you. Like you said, hey, I want to quit smoking, you probably would have a hundred people come and say I'm gonna help you. But if you say I want to get out of debt, you're gonna probably have 99 run the other way.
Brad:
You might have one stick around and I think you know that's the part that People need to be prepared about when it comes to loud budgeting, because this is suggesting you should be loud, you should be Intentional, you should vocalize, which is fine, but at the same time, you definitely need to be prepared for a lot of pushback and a lot of peer pressure to break Whatever it is that you're trying to do. That was my experience getting out. I know it's a lot of other people's experience getting out. In fact, that's one of the reasons why we have Roots and we have this group and we have this accountability group. It's because in that group you're not gonna get pushed back from people. This is like a group you can engage in that's gonna support you and what you want to do. Because on the outside, it's like when you, when you see that nearly seven out of ten people are living paycheck to paycheck, I guarantee you the majority of people ain't doing loud budget, they're not following any of that stuff and some of them probably haven't ever heard of it. But the same time, I think I will give credit to this whole idea because it's like I said, before we hit record guys. I think it brings budgeting back into the positive light, because budgeting in itself the word budget it's just often looked at as like a swear word or it means you're cheap or you're broke or you're a penny pincher or you know, and it doesn't mean any of those things. So I will say I love that the word is back out there and it's being put in the positive light on how it can affect your finances.
Chris:
There's a couple things. When you read that article I read it too and that's why I sent it to you but I, when I got to the why part, did you notice there's a? There's a part in there where he talks about Spending money and knowing your why. The point I want to point out here is that it seems like at least some younger people Are figuring out at an earlier age than we did that it's important to have a purpose and a goal, and where you headed to and that's that you know he used the term why there. But we always talk in here about how, you know, we try to do things to impress other people, and I say we meaning society. Okay, and Ryan, you talk about there's a lot how you always wanted to try to impress other people, and, in essence, when you stop trying to do that, you're quietly Doing the same thing that they're verbalizing. They're just gonna be out front about it. They're coming right out and saying I'm no longer gonna try to impress anybody, okay, whereas we just kind of kept it quiet, and so the thing I like about it is they brought money out. It's not a taboo subject, at least for them, and so if you're not part of that generation listening to this podcast. There's a couple lessons here is it's okay to not try to impress people. Maybe you're not the one that's gonna to verbalize it and come right out and say something, but I would at least encourage you To do some of that because it brings in the accountability that you talked about. So there is a little bit of truth to what that article said is you will eventually, if you stick around with it long enough, you're gonna find like-minded people, yeah, who are gonna be there to help you and tell you here's some better ways to do things or here's just to hold your hand through some tough times, and so, generically, I like the idea.
Brad:
Well, I think the other reason why I like the idea is because it I think it is so important to put your foot down when it comes to your finances. They, you know, into an only encourage that. I think the other thing, though, is we just have to be careful, and just it'd be very transparent with people is that? Not everyone's gonna just support that, and that's okay. But learning how to put your foot down, learning to have a backbone when it comes to your finances, your financial goals, not to be pushed around by Other people's opinions of what you or what you should be spending your money on or how you should be living your life I think all of those things are very good things, especially in the younger generation, to have that assertiveness in their life. I mean, if more people had that, I think there wouldn't be as much shame as there is around money. Even in a lot of these tiktok videos, it says it's like we're taking the shame out a way of, instead of saying I can't afford it, it's just I'm just not choosing to spend my money there.
Amber:
I'm choosing it to spend my money more intentionally over here, because these are the things that I want over here, and you know, and it's okay to verbalize that and tell your friends and family that and I think that verbiage which is what you really need to use, because when you say, you know I can't afford it, a lot of times people will think and I mean in my experiences they're thinking like, oh, poor Amber, she can't afford it. You know, like I told, I told a Family member it was just wasn't in the budget one time and she goes well, that's okay, like you could make payments to me and then you could have it, this item. And I was like you know, that's not what I meant, it just wasn't a priority to me at that time and that's probably more of what I should have said. Right Well yeah, I mean it definitely sounds different, right?
Brad:
I mean, yeah sounds different, saying I can't afford it, rather than saying it's either not my budget or I just am not choosing to spend my money on that so, speaking of this word, afford I know we may be getting off topic slightly here, but you brought it up and I think it's important.
Chris:
At least I want to get this out on the table for the, for the people who are listening out there. I read a book one time, okay, and there's three lessons in that. Look in that book that I have found to be very valuable, and one of them he talks about. Stop saying I can't afford it and start asking yourself how can I afford it? All right, maybe you can't afford it right now. It may be loud budgeting is your method to be able to save, so that one of these days you can't afford the important, the things that are important to you. So for those of you listening out there, right now, you may be, you might have to say to yourself. I can't afford it, I can't afford it. But start training yourself to say how can I afford it, because that changes the mindset, it changes how you think, and it's a very different question. I should becomes a question, not a statement, and eventually you'll begin to figure out ways to afford things. You know, a big part of that, obviously, is budgeting and getting out of debt and so forth. But, but don't let that always be your mindset.
Brad:
Well, I think you're right and I think if you want something bad enough, you're willing to forgo other things in order to afford things that you want. You know, I think I think it. It just gives you a different perspective and and it allows you to really start evaluating your needs Versus your wants, because when you're broke, living paycheck to paycheck, it seems like you know everything's a want and you know you're willing to do anything for it, just about anything. You look at the Stanley Cup craze that's going on. You know I mean people are going crazy for those cups. But when you get serious and you set those goals and if you want to say, do loud budgeting or have a budget or do a lot of things that we talk about on this podcast, it's you know you just you're willing to sacrifice in other areas to get other things that you want that bring you happiness, or that you know the things that you want to bring in your life to help you reach your goals. I think the last thing I want to talk about, guys, just as it relates to this, is just, it's trendy and that's what concerns me about it. You know, it's like it is the in thing right now. And guys said if you're listening to this, you got to be willing to do this past when this becomes unpopular, because there's going to come a time where you know, loud budgeting, it's gonna be a thing of yesterday. It really is. It'll go away that quickly probably. You know, but you got to be willing to do this stuff, I think, even when you don't want to, or even when nobody else is talking about it. And that's how a lot of us got out of debt. It's finding that small group of people, finding those like-minded people. People are still doing it Because it isn't really all that popular and isn't gonna remain popular because it's not part of the societal pressures of spend, spend, spend, go into debt. You only live once. You know Buy now, pay later, type stuff. So I think you know you really got to commit to it, like if you're gonna be, if you're gonna commit to this loud budgeting, you got to commit to it even after it isn't popular anymore. And when you start talking about with other people they're like what are you talking about? I've never heard of that before. Right, because right now it's the thing, but pretty soon it's not gonna be the thing anymore.
Chris:
Well, I would say this regardless of whether you loud budget or not, embrace with the messages, you can do it quietly if you want to, all right. So if you're somebody out there listening to this going, that's not gonna be me. Or even if it is you and you eventually find yourself Not wanting to verbalize or loud budget, just keep doing it, it will work.
Amber:
Yeah, I think the important thing too is just to find that accountability person or community or something. Because If you can have somebody that has your back, that's willing to you know, support you, and when you're feeling down and struggles and, oh my gosh, I just want to give up, you can have that somebody or that community that's gonna make all the difference whether you're loud or you're quiet.
Brad:
We've talked about it a lot on this show too, and I think one of the cool parts about this is, like you got to find the thing that works for you. I mean you really do, and I think there's a lot of different ways that gets people motivated. I mean, there was that cash stuffing that came back for a while. That was the craze. That was just, you know, the old-fashioned envelope system that's been out for years, years, right. But I mean, if this is the thing that gets you excited, then do it. But you just got to be willing to do it even when it's not exciting to other people any longer, because if you're just gonna be on the bandwagon for the next month, two months, three months and then go back to your ways, it's is really not gonna do too much. But if you're willing to really commit to it, I think it can make a big difference. So the totally awesome debt freedom planner is helping so many people make consistent progress with their finances, whether that be building emergency funds, paying down bills, budgeting, tracking paydays, saving up for larger purchases, goal planning and Planning for those irregular yearly expenses that always seem to catch you by surprise. Now the debt freedom planner will help you take the stress out of managing your money. And if the thought is running through your mind, hey, I just need to have a simple tool to get my finances together. This planner is perfect for you. Head over to the real debt free dad. com. Click on the debt freedom planner in the menu at the top of the page and order your debt freedom planner today.
Amber:
And that sound means it's time for the celebrations of the show. First we have Leanne went to Costco and only spent $80. Next up next to Shannon.
Brad:
Shannon says and all of my bills are Finally caught up, I'm about to start closing credit card accounts and negotiating payments and Saving for my emergency funds. Shannon, that is awesome progress, great wins.
Chris:
And Claudiann, I just paid off a $500 credit card.
Brad:
Yeah, there you go. That is awesome, as always. Congratulations to all of you guys who are taking a stand for your financial life and are wanting better. Hey, we get that. Getting out of debt isn't easy, but with our help and with your consistency and discipline, we promise you this will be some of the best work that you guys do in your entire life. Thanks for joining us today and we will see you guys on the upcoming episode.
Speaker 2:
Thanks for listening to the debt free dad podcast. Connect with us on Facebook, tiktok, youtube and Instagram. Just search debt free dad. If you found value in today's episode, please leave us a rating and review. We so appreciate it for resources, show notes and links mentioned in today's show. Visit debt free dad. com. Catch you next week you.
