Why the new social media trend for ‘loud budgeting’ could bring universal benefits…
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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.
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Hide AdAnd – 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.
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Hide AdHigh 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…
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Hide AdThis 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.
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Hide AdFor 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.