Since the beginning of 2024, “loud budgeting" has been all over social media. With this approach, budgeters are vocalizing their financial goals and honestly explaining to friends and family why they choose to opt out of some activities that cost money. This may look like a friend explaining their decision to skip Friday-night drinks because they’re saving for a vehicle. Overall, loud budgeting is useful because it gives the budgeter an honest and open way to prioritize financial health. That being said, vocalizing financial priorities can put a person at risk. Know this advice about the loud budgeting trend to protect yourself:
Others can use loud budgeting deceptively
Maybe you ask a friend or family member to join you for a movie, and they decline, citing it doesn’t fit with their money goals. You decide to buy their ticket so they can come. If this person has dishonest intentions, they may abuse your generosity under the guise that it’s helping them meet financial goals. In a similar way, a significant-other could frame their money goals manipulatively, like using loud budgeting to sidestep fairly contributing to household expenses. Look for these red flags to save yourself from loud-budgeting-induced manipulation.
Be careful what you share on social media
Using loud budgeting to clean up finances and reach money milestones is exciting, but it’s best to refrain from sharing details on social media. Users with nefarious intentions could string together enough personal information to target you with a financial scam or identity theft.
Refrain from sharing names of financial institutions or account balances
Sharing where you bank and invest may put you at greater risk for stolen or hacked account information. An ex-partner or untrustworthy family member could use private personal information, like your mother’s maiden name or the street you grew up on, to get around account security measures.
Be ready for pushback and hurt feelings from family and friends
Financial goals for basic needs, like shelter and transportation, will generally garner support from those around you (like saving for a home downpayment or a car repair). However, saving priorities that aren’t universally valued, like a vacation or a new TV, may be met with hostility. Declining an invitation due to a valid, but nonessential, money goal may accidentally imply that you value that vacation or TV more than that friend or family relationship. To avoid this potential misunderstanding, have alternative suggestions that fit in your budget, like grabbing coffee or going for a walk.
Final Thoughts
Loud budgeting is a new and useful way to tackle financial goals, so being aware of these risks will help protect this technique’s core goal: your financial wellbeing.