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Source: What Is ‘Loud Budgeting’ on TikTok?
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What is an example of loud budgeting? An example… Telling a friend that you can’t go out to a concert next weekend because you’re saving money to pay off your car loan. Or asking your family to come over for a potluck dinner instead of going out to an expensive restaurant. Enter Loud Budgeting, a financial revolution that’s taking the world by storm.
This strategy involves openly discussing your financial choices, even when it’s unpopular. By sharing your financial goals with your community, you’re more likely to stay committed and resist the urge to splurge.It’s less about looking to be like celebrities, and more about focusing on our own lives. Essentially, loud budgeting is about being upfront and honest about your financial situation and taking control of where and how you want to spend the money you do have.
Loud budgeting 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 FOMO, aka the fear of missing out. You can start having more control over your finances today by using the three P’s: paycheck, prioritize and plan. Ideally, you should have between three months and one year of expenses saved in an emergency fund.
Savings, even a little, should be a line item in your budget. If you don’t have any savings at all, that is a red flag that you are spending too much money. Loud budgeting is a new trend that focuses on vocalizing your financial goals: what fits into your budget and what doesn’t. Loud budgeters openly turn down activities that don’t fit in their budget and explain their financial goals to friends and family.
Loud budgeting is a TikTok trend where you prioritize your budget out loud. Instead of overspending or making up an excuse to skip going out with friends, you simply tell them you don’t have the budget to spend money. A noise budget is a listing of the various sources of noise at a receiver and their associated ranking by importance. It compares different sources of underwater sound, at particular geographical locations and in different frequency bands, averaged over time.
Spending addiction is a psychological condition characterized by an uncontrollable urge to spend money, often leading to negative consequences. It goes beyond occasional splurges or impulsive purchases and can have a significant impact on a person’s financial and emotional well-being. Overspending is often more than just a lapse in financial judgment; it frequently signals underlying emotional or psychological triggers.
For instance, some people may overspend as a form of escapism, temporarily distracting themselves from stress or emotional pain,” Hathai says. Budgeting is the key to staying conscious about how you spend your money and helps ensure you can allocate money toward your financial goals. Create a budget that covers both your basic expenses and savings goals — including retirement, emergencies, and other larger purchases, like buying a home or a car.
When we’re under stress, we react to shopping differently. Just as we may naturally crave sweets to lift our moods, and as we respond positively to other pleasures in life, people tend to feel stronger impulses to buy themselves treats for a mood boost when stressed. Overspending can happen for different reasons, such as: You might spend to make yourself feel better. Some people describe this as feeling like a temporary high.
If you experience symptoms like mania or hypomania, you might spend more money or make impulsive financial decisions. The loud budgeting trend encourages people to be honest with others about their finances and say “no” to purchases or events they can’t afford, or don’t wish to spend their money on. It’s a strategy designed to put your money aspirations at the forefront for friends and family to see and hear.
Use cash for shopping purposes and keep your credit and debit cards at home when you go out. Identify what triggers the urge to shop or spend, and think about what you can do to manage those triggers. Do your best to avoid the urge to shop for unnecessary items before bills are due or immediately after getting paid.
RISE Memphis Hosts FREE Budgeting Workshops For Financial Literacy Month
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