A NEW social media trend called ‘loud budgeting’ is going viral - and it has the potential to improve your life and finances dramatically.

In short, this movement is challenging the age-old idea that discussing money is taboo.

And – when these discussions take place appropriately with family and friends – they really can be empowering. 

Allow me to explain why I believe that ‘loud budgeting’ is significant…

We’re all working through some exceptionally tough economic times.

For example, UK interest rates currently stand at 5.25% which is the highest level since the 2009 financial crisis. 

High food and energy costs have also been eating into our disposable incomes and - although recent data suggests these are falling – the cost of meat, fish and fruit had risen by five per cent year-on-year in February 2024, according to the British Retail Consortium (BRC) shop price index.

So, what needs to happen?

I’ve always maintained that setting a monthly budget, which is closely adhered to in order to save - and ideally invest – is a really good thing.

Similarly, I’ve also long been an advocate of full and open discussions within your family and close friends about finances in general.

When these chats take place regularly, I’ve seen first-hand how people develop the confidence to inform those loved ones about the amount of disposable income they have…

This can frequently avoid upset surrounding any non-appearances at get-togethers or nights out.

And this is where the new social media trend for ‘loud budgeting’ comes in.

It’s all about being transparent and explicit about what you are - and are not - willing to spend your money on.

These details are communicated most clearly with your own family and close friends.

For example, imagine you have a very clear financial goal in mind, such as paying off your credit card debt, saving for your summer holiday or putting money aside for a deposit on a house.

Then one day you’re invited out to an expensive restaurant, or to go to a hen or stag do abroad for several days.

By embracing loud budgeting, you can say no to these expensive offers, and simply explain that it’s because you want to use this money to meet other priorities.

This is quite different to saying you don’t have the money in your account, so there’s no feeling of shame about not being able to afford something.

Instead, it’s explaining your reasoning for not spending on certain things and being transparent about your boundaries and financial goals.

By being open in this way, you can confidently and positively say no, hopefully without feeling judged by your friends.

Finally, being open and transparent with your social group could encourage others to do the same, and you may find yourself with a regular source of encouragement, advice, support and motivation.

To be clear, I’m not advocating that anyone divulges sensitive financial information on social media channels.

But I do believe that the ‘loud budgeting’ movement could harness the potential of digital technology for the good by raising awareness of effective and appropriate money management.

And that can only be a good thing for us all.

If you have any questions about the best way to get your finances on track, please get in touch with Jillian or another member of the Future Life Wealth Management team by going to https://wealthmanagement.uk.com/ .

This article was originally published in The Star, Sheffield. No individual investment advice is given, nor intended to be given in this article and liability will not be accepted in respect of any action you may take as a result of reading this article. If you are unsure you are urged to take independent investment advice.