Do these sentences resonate with you? 👇
- "I want to save more money, but I don't know where to start."
- "I feel like I'm constantly broke, no matter how much I earn."
- "I'm tired of feeling guilty about my spending habits."
Many of us struggle with managing our finances, feeling overwhelmed by endless expenses and unsure how to reach our financial goals. Loud budgeting is a fresh approach that can help you take control of your money and create a brighter financial future.
"Wealth is about having the time to do the things you want to do, not just the money to buy things." - Suze Orman
What is Loud Budgeting?
Creator Lukas Battle introduces loud budgeting as a financial approach that emphasizes open communication about money, conscious spending, and clear financial goals. Unlike traditional budgeting methods that often promote secrecy, loud budgeting encourages you to openly discuss your financial situation, aspirations, and challenges. By breaking the taboo around money, you can foster a supportive community and hold yourself accountable.
According to a recent survey, Gen Zers who practice loud budgeting save an average of $629 per month! By being intentional about your spending and prioritizing your financial goals, you can achieve similar results.
Why is it gaining popularity?
Loud budgeting has gained traction due to several factors:
- Alignment with Gen Z values: It resonates with a generation that prioritizes authenticity and community.
- Challenge to societal norms: By openly discussing finances, it breaks down the stigma surrounding money.
- Proven results: Studies indicate significant savings for those practicing loud budgeting.
Benefits of Loud Budgeting:
- Increased financial awareness: Openly discussing finances can lead to a deeper understanding of your spending habits.
- Reduced financial stress: Sharing your financial situation can alleviate feelings of isolation and guilt.
- Improved accountability: Publicly declaring your financial goals can motivate you to stay on track.
- Stronger relationships: Open communication about money can deepen bonds with friends and family.
- Potential for financial support: Sharing your financial struggles might lead to helpful advice or resources.
Using the 50/30/20 Rule as a Starting Point
One popular budgeting method to consider is the 50/30/20 rule. This simple framework divides your after-tax income into three categories:
- 50% for needs: Rent, utilities, groceries, transportation, and other essentials.
- 30% for wants: Dining out, entertainment, shopping, and other discretionary spending.
- 20% for savings and debt repayment: Build an emergency fund, pay off credit card debt, and save for long-term goals.
Remember, this is a general guideline and may need adjustments based on your individual financial situation. The key is to find a budgeting method that works for you and helps you achieve your financial goals.
"Budgeting isn't about restricting yourself; it's about empowering yourself to live the life you want." - Rachel Cruze
How do YOU budget?
Transitioning from your current financial situation to a more desirable one begins with open and honest communication about money. Here are some questions to get you started:
- How would YOU describe your current relationship with money?
- What are YOUr biggest money challenges and frustrations?
- What are YOUr hopes and dreams for YOUr financial future?
- How do YOU envision YOUr ideal financial situation?
- What steps have YOU taken so far to improve YOUr financial well-being?
"Do not save what is left after spending; spend what is left after saving." - Warren Buffett
Click on the dropdowns below to see the easy action items:
Do one of these things TODAY 👇
- Declutter Your Finances: Spend an hour reviewing your subscriptions, bills, and financial accounts. Set a goal to cut what you don't need and automate payments where possible.
- Create Flexible Goals: Outline your financial goals, even if it's a bulleted list (we'll refine them more using the SMART method later). This will give you clear targets to work towards.
- Financial Check-In: Schedule a monthly or weekly check-in with yourself to review your progress and make adjustments as needed.
- Treat Yourself: Buy that $3 cafe drink as a way of celebrate yourself for making new financial goals.
- Build a Support System: Reach out to friends, family, or financial advisors for guidance and encouragement, practcie telling them what you're working toward.
Say one (or all) of these affirmations out loud 👇
- "I am taking control of my financial future."
- "I am making informed decisions about my money."
- "I am building a strong financial foundation."
- "I am confident in my ability to reach my financial goals."
- "I am open and honest about my financial situation."
Channel that feeling 👇
Feeling overwhelmed? Remember, even the smallest steps can lead to significant changes.
Feeling unsure? Start by defining what truly matters to you.
Feeling inspired? Dive deeper into personal finance with our full money guide.
Some vibes to close us out
Loud budgeting is about more than just saving money; it's about empowering yourself to take control of your financial future.
By being open, honest, and intentional, you can achieve your financial goals and live a more fulfilling life.
Remember, every small step counts!
YOU got this. ðŸ’✨
Sources
- "'Loud Budgeting' Is the First Viral Money Trend of 2024 — but Does It Work?" Money (2024).
- "Creating a budget." Bank of America.
- "Here's How Much Money Gen Z Americans Say They Save With Loud Budgeting." The Ascent (2024)
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