When we get together with family and friends, not everyone feels comfortable talking about money. But a new trend is trying to change that. “Loud budgeting” is all about breaking that taboo and encouraging people to talk about their financial situations. If this makes you feel a bit uneasy, you are not alone!
Here are seven things to know about loud budgeting and how to make it work for you:
1. It’s all about transparency: Be honest about your financial situation—with yourself and with others. You can openly share your budget, spending limits, and financial goals with friends and family.
2. Find a community to support you: By discussing your budget openly, you can gain support from others who understand your goals and can help you stay on track. Being open about your finances can also help reduce the pressure of keeping up with other people’s spending habits. For example, people might be more understanding if you refuse an invitation to go out to eat or go shopping if they know you’re trying to save or pay down your debt.
3. Consider finding an accountability partner: Try partnering with someone who has similar financial goals, so you can keep each other motivated. This is the same idea as finding a gym partner. Some people may find it easier to stick to a plan when they’re doing it with someone else.
4. Shift the narrative to feel more empowered: Instead of telling yourself or others “I can’t afford this,” try saying “I choose not to spend on this because it’s not a priority for me.” Reframing things this way empowers you to make financial decisions based on your values.
5. Set clear goals: Define what you want to achieve with your budget before you communicate your goals openly. Financial goals can include paying off debt, saving for a home, or even saving for a trip of a lifetime.
6. Start small: Begin by discussing your budget with close friends or family members. It can be less intimidating to start this way.
7. Get social: Some people share their budgeting journey on social media platforms like TikTok or Instagram, to connect with others who practice loud budgeting. If this is of interest to you, remember to never share any personal and banking information that could put you at risk of fraud.
Whether or not you feel loud budgeting is for you, setting a budget is key to achieving your financial goals and managing your money responsibly. You can also take advantage of online financial tools such as the FCAC’s budget planner. It lets you create and save a budget online and shows how your spending and saving habits compare with the average Canadian. Get next steps with suggestions and useful links, earn badges, and share your success story!