Let’s say you’re out for a night with friends and you keep getting talked into staying longer. It’s fun, but it means you end up spending more money than you’d actually like. The solution according to TikTok? Loud Budgeting.
What is Loud Budgeting?
When you do fun things with friends, you spend money. For example, you pay for food, drinks and your transport. Sometimes, when you are socializing, you can spend more money than you actually want, for example when your friends push you to order another drink. It is then difficult to be honest with your friends about your budget. As a result, you stay home unsociably or spend much more money than you actually want. Both outcomes are not ideal. TikTok therefore encourages you to be honest about your budget and to clearly indicate your limits to your friends. This is also called Loud Budgeting on the app. By doing Loud Budgeting, you break the taboo around talking about money. You indicate that you do not want to spend more money without feeling ashamed or guilty. And you do not have to say it with the excuse that you do not have enough money, not wanting to spend more is just as valid. Loud Budgeting is a good way to become more open about money matters with your friends, but also to become better at saving or saying no to unnecessary expenses.
Here’s how you can try it yourself
But what exactly does this look like in practice? Imagine that you are invited to go out to dinner with friends. The restaurant is very expensive and so you indicate that you are not coming because the costs involved with this dinner do not fit your current financial goals. So you are just honest with your friends. By being honest with your friends, you also make it easier for yourself not to go beyond your own limits.
In these situations, you can suggest a cheaper alternative. But the most important thing is that you are clear and loud about why you are not coming. By letting others know about your financial goals, you can be more likely to stick to them. You will have to take responsibility for your spending when your friends confront you about it. And if you are honest with your friends, they will be less likely to try to convince you.
@mohaewithjennypark
Why you should try it
Loud Budgeting is a good technique if you are someone who finds it difficult to talk about money matters. It is also good if you are easily persuaded and therefore often spend too much money. So set a goal for yourself. Think of paying off debt or saving for a big purchase. Through Loud Budgeting, your friends can then help you achieve that goal.
