The expression “keeping up with the Joneses” is an old one, but you’ve probably heard it.
It means comparing yourself to your neighbor, seeing what they have that you don’t, and trying to match or outdo them.
You’re compelled to spend money on things you shouldn’t, whether it’s the newest phone or designer clothes or an expensive golfing trip – whatever’s popular in your social circle – because you feel the need to keep up.
It’s a competition.
But what if you not only take yourself out of the game, but you announce what you’re doing – and why – to whoever’s listening?
There’s a trend going around called loud budgeting in which people communicate their financial priorities and goals and say no to non-essential expenses that would keep them from achieving them.
According to CNN Business*, loud budgeting started as a joke posted to TikTok by comedian and writer Lukas Battle as part of the what’s in / what’s out lists for 2024. It has resonated with people because it makes it OK to live frugally.
“It’s not, “I don’t have enough,’” Battle said in his video. “It’s, ‘I don’t want to spend.’”
And it’s a term you can use when you don’t want to feel awkward talking about your spending limits. Rather, you can be confident knowing you’re focusing on the things you value and taking control of your financial decisions.
So, how can you join the loud budgeting trend?
First, figure out what your priorities are. Are you a young person saving up to buy a house? Do you want to travel? Maybe you simply want to pay off your student loans as quickly as possible.
Perhaps you’re at a different point in life and funding your kids’ college education looms ahead.
And no matter how old you are, we hope you’re planning for retirement.
Whatever your circumstances, when a situation arises that would have you spending money in a way that doesn’t align with your goals, be honest. In the social media age, where comparison can be the thief of joy, you can finally take back ownership of your finances. Loud budgeting encourages financial discipline and helps you form a group of people who help keep you accountable.
I decided to try this trend for myself. I’ve found myself thinking, “I told my friends and family that I’m saving for a down payment on a house. I should be sticking to that by packing my lunch or staying in for dinner.” This is motivating me to keep my goals in mind with every purchase and build momentum.
So, tell your friends you’re loud budgeting and invite them over for pizza and board games rather than having dinner at an expensive restaurant. Watch the game at a sports bar instead of attending in person. Choose a weekend camping trip over flying somewhere exotic.
Who knows? Maybe they’ve been looking for an excuse to do some loud budgeting of their own.
By Cale Ogi
Financial Advisor, CFP®
*Source: Loud Budgeting is In; Quiet Luxury is Out. Meet the TikToker Who Started the Financial Trend, CNNBusiness.com, Feb. 5, 2024
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