The phrase loud budgeting has taken over social media. The concept of loud budgeting means you share how you value spending your money instead of just blindly spending. It doesn’t mean you are restricting yourself, but instead you are embracing what you value. For example, you want to celebrate your friend’s birthday, but you know you want to go to a concert this month. Instead of spending $50 on a birthday cake, you tell your friend you’ll bake them a cake instead. Or instead of buying the new book for your book club this month, you check it out from the library for free and tell your club what you intend to use that $20 for. Loud budgeting is about knowing and voicing how you want to spend your money. Discover how you can make this trend work for you.

Using Loud Budgeting to find the quiet

The concept of Loud Budgeting came to us from TikTok, but as much as social media can be a place for good tips and tricks, it can also inundate us with advertisements. Many of us fall into the trap of mindlessly scrolling on social media and seeing products in countless influencer posts, which then leads us to buy the product. It is important to remember that an influencer makes money by you spending money. According to AdAge, influencer marketing is a $21.1 billion industry. Many of the influencers we love to follow are paid to show off their shopping hauls and products.

While scrolling socials can lead to mindless spending, so can the constant notifications your phone sends. Emails, texts and app notifications never stop.

If you’ve fallen trap to this unnecessary spending, hit the unsubscribe button at the bottom of the email and send the quick ‘Stop’ text to the numerous numbers that are texting you deals. Many phones also come with the function to mute notifications for a designated time period. Try setting an hour that works for your schedule to silence your phone and step away from the pressure to constantly spend and get started on your loud budget.

Budget with confidence

To get started with this trend, first, you need to establish your budget so you can fully understand where your money is going. Detailing your budget can be tedious, but an incredibly important exercise. There could be streaming services or memberships you are still paying for that you aren’t using. Or perhaps you will be surprised to see how much you are actually spending on eating out or online shopping, when it isn’t something you really care about or need. You can create your budget with pen and paper, or you can use an online tool. Whatever sounds easiest to you is the method you should pick.

New Reality Check: The Paycheck-to-Paycheck Report: The Nonessential Spending Deep Dive Edition,” a collaboration with LendingClub and PYMNTS, found 2 in 10 consumers living paycheck-to-paycheck say nonessential spending is one reason for their financial crunch.

Next, think about how you enjoy spending your money. Loud budgeting isn’t trying to make you feel guilty about your spending, but instead support how you want to spend your money. Your hard-earned dollars should be spent in ways that bring you joy. For some that might mean making sure you can eat out and for others that means making sure you can afford specialty olive oil. Neither option should bring guilt, but instead showcase what’s important to you.

Create a goal

After you outline your expenses, you can create a realistic financial goal. Maybe you want to save for a down payment, or another large purchase. Or perhaps you want to set aside some money for a vacation. Your financial goal can be whatever is important to you at the time. Remember, your bank can help you establish a goal by reviewing your budget with you and discussing your hopes and dreams for your future.

Once your budget and goal are established, practice loud budgeting by sharing your goals out loud with the people in your life.

Hack your spending

As you loud budget, you might want to use a few free hacks to help you reach your financial goals.

  • A library card doesn’t cost anything and opens the door to a world of amazing books and programming.
  • Shop your friends’ closet before a trip or fun night out. We can constantly feel the urge to buy a new outfit or trending item, but instead borrow something so it feels new to you but doesn’t cause you pull out a credit card.
  • Spend time in the great outdoors. Going for a walk with friends or using park pickleball courts that are completely free can be great alternatives to being social while saving a few dollars.
  • Shop off brand. Grocery stores usually carry their own store off brand that is a little less expensive than a name brand.
  • Pack your lunch. It is no secret that packing your lunch or bringing your own coffee can save you money. With loud budgeting, you can still join your coworkers for a break while being confident in your decisions to save money.

Lean on your community

Loud budgeting is all about being transparent with others so they can support you and hold you accountable. Similar to having a workout buddy who is reminding you to get out the door and to the gym, loud budgeting gives you accountability with confidence. You might even learn another tip or trick for saving money by sharing your spending habits with others. Saving your money is a badge of honor and something you should be proud as it supports your financial goals.

You can lean on your bank as an accountability partner too. With online banking, you can create spending alerts as reminders of when you are getting close to the end of budget, or you can set up automatic transfers to your saving account. Your personal banker can also be available to talk with you about different strategies to support your loud budgeting goals.

UMB personal banking solutions offer convenience and simplicity to meet all your financial needs. From home loans to auto financing and everything in between, see how UMB personal banking can work with you to find the right products for your life and lifestyle.

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