The 'loud budgeting' trend is taking over. What it is and how to hold on to your friendships while at it

Finally, it’s socially acceptable to decline invitations and to cite your financial goals as the reason for doing so — thank you, TikTok!

"Loud budgeting" is the inaugural financial trend for 2024, and it’s opening the door for transparent conversations about savings priorities and budget constraints.

Some say it’s a conscious act to turn your back on a fake culture that idolizes rich influencers, unachievable luxury and acting like you have more money than you do — in the '90s and 2000s, this was called “keeping up with the Joneses.’”

I love honest money conversations with friends and family and have personally been doing it for years. The big question is how to do it without ruining all the fun and your relationships.

This is how.

First, you’ve got to have savings goals to begin with

You can’t communicate what your financial boundaries are unless you’re clear on your goals and have a budget to support those goals.

What are you working toward? Is it a balance between saving for a down payment while still contributing to your work RRSP? Is it a goal to pay off your credit cards plus those pesky student loans? Are you exploring your savings capacity — the maximum amount you can pile into your high-interest savings account (HISA) each week? Is the goal to simply balance your budget and spend only what you have? Maybe you’re focusing on improving your credit score.

My advice is to work toward two or three important goals this year (anything more is too much). Now, using whatever budget template you fancy — spreadsheet, pen to paper, apps, etc. — work the goals into the budget. That might mean allocating $500 a month toward your line of credit principal balance, or $25 into your HISA.

Second, this is about honesty around taboo topics

Now that you have goals, you’re ready to speak confidently about your priorities for 2024. If a friend asks you to dinner at an expensive restaurant, you can suggest a less expensive place to eat, or invite them to dinner to skip the dinner expense altogether. Tell them honestly that it doesn’t fit your budget rather than lying about a scheduling conflict. They might actually thank you.

Money has been a taboo topic for so long that honest money talk might take some getting used to. Practice with closer friends and family members first by saying what you want and need in order to be financially well, and not being afraid to say "no" if an expense is just too much. After you practice a bit, you’ll be less afraid of what others think of you, and happier that you just stuck with what works for you. By the way, you don’t need to say what your pay is if you don’t want to (though, many loud budgeters do just that), reveal your bank balance or tell people super private information (you should never share account numbers, passwords, etc.). This is about communicating your boundaries and losing the fear you might have around money matters.

Third, when done right, it can broaden your friendships

The reason loud budgeting is a trend is because people are finding a sense of community as they speak more openly about their money priorities. It feels good and freeing to decline a tropical group vacation you can’t afford, and to suggest a less expensive camping trip next year that you can actually save for. There’s often immediate support and encouragement for "sticking to your goals" or "having the guts to say what you need" or "making yourself a priority" when you speak your money truth.

Learning and sharing are further outcomes; swapping budget templates, learning more about investing, finding the best discount grocery store and adopting each other's money-saving hacks. In my very loud budgeting community of more than 2,000 people, which I host on Facebook, community members have even shared images of their financial vision boards.

Some loud budgeters are inspiring their friends and family to join the trend, and to not be scared to share.

Fourth, when you say it out loud, you’re more likely to stick to your plan

Accountability is key to achieving your goals. When you say your goals out loud, it adds an immediate layer of accountability — to yourself, to your friends and to your family. You’re more likely to do a self check-in on your progress (maybe that means updating your net-worth template) and if you’ve got caring relationships, those people will probably ask how your goals are coming along.

If you’re going to hop on this trend, go easy on yourself. You’re going to hear stories of people that are “further ahead” or “catching up” or “making money faster.” Try your best to avoid unhealthy comparisons and focus on the benefits of learning from others. A financially stronger you takes time and consistent habits.

This article was originally published in The Star. Lesley-Anne Scorgie is a Toronto-based personal finance columnist and a freelance contributing columnist for the Star.