What are the pros & cons of "loud budgeting"?

Are you struggling to reach your financial goals, but hate the fear of missing out? Are you worried that if you say, "no" to too many nights out, your friends will eventually stop inviting you?

Loud budgeting is a money saving technique that involves turning down social engagements, like dinner or going out for drinks, when they would negatively affect your budgeting or financial goals.

Learning about the pros and cons of loud budgeting can help you decide if it's the right strategy for you.

• Setting boundaries about your financial goals.

• Empowering people to put their finances first.

• Reducing the stigma of turning down plans or purchases.

• Being open to conversations about money.

Pros:

• Loud budgeting can open up honest conversations about money.

• It helps minimize the fear of missing out by prioritizing your goals.

• It encourages you to be more aware of your finances.

• It minimizes the stigma of turning down an opportunity.

Cons:

• Some people may see it as a taboo to share so much about your financial situation.

• Loud budgeting could encourage you to decline opportunities rather than find cheaper or more frugal alternatives.

• You'll need other financial strategies for it to be effective, like setting a clear financial goal or creating a budget.

While loud budgeting is useful, it doesn't mean you have to turn down every invitation or request. To minimize one of the downsides of loud budgeting, try looking for solutions that prioritize your financial goals.

For example:

Instead of declining a dinner invitation, someone using loud budgeting might say, "I'm trying to stick to a $20 meal budget tonight, so I'm thinking takeout might be better than a sit-down restaurant."

This opens up a discussion about affordable options, rather than creating awkward silences or hidden financial stress.

Jeffery is graduating from college soon. He wants to lower his student debt amount as much as possible before he graduates. Since it's his senior year, a lot of his friends are inviting him to dinners or nights out, but Jeffery has been refusing, saying that he wants to keep his debt as low as possible.

Although his friends understand why he keeps declining, they still get annoyed that he never goes out with them.

What limitations of loud budgeting are shown here?

Now that you can describe the pros and cons of loud budgeting, it's important to remember that it's just one part of your personal finance strategy. While it will save you money, you'll have to do more work to create a clear budget and hit your financial goals.