Photo by Priscilla Du Preez 🇨🇦 on Unsplash
Have you heard the term “loud budgeting” in 2024? It’s trending and describes the phenomenon of naming out loud when you can’t afford something, or more accurately, when you have enough money but don’t want to spend it on the thing that’s being asked of you.
Financial therapists know that words have power, so we aren’t about asking people to keep saying “I can’t afford this. I can’t afford that.” That self-talk has a negative effect on mental health and often keeps people living in scarcity. In contrast, loud budgeting is about saying no to spending.
So how do financial therapists see loud budgeting working? What if it can serve as an empowerment tool? What if it names out loud your values and priorities for saving and spending. Loud budgeting from this perspective could sound like:
I don’t want to prioritize that right now.
I don’t want to spend money on that.
That’s not a priority.
I have other goals in mind right now.
I’m saving my money for xxx.
I’ve already met my budget this month for (coffee/eating out/shopping/etc).
No thank you.
Meeting your money goals AND practicing boundaries with others sounds pretty good doesn’t it? So here’s your invitation to experiment with loud budgeting from a place of owning where you stand. It can serve as tool that isn’t about reinforcing your ability to afford something but focuses on not wanting or choosing to afford something, stating it isn’t a priority right now. It’s a new response to financial peer pressure, and I think financial therapists couldn’t be more excited for folks to try it out.