(NC) There’s a social media movement gaining traction right now that’s helping people to normalize talking about money. It’s called “loud budgeting” – a financial strategy that puts your money aspirations at the forefront for others to see. The trend encourages people to be more honest about their finances and say no to purchases or events they can’t afford, or don’t wish to put their money towards. For example, telling a friend that you can’t go out to a concert because you’re saving money to pay off your car loan.
Here are five tips on how you can make loud budgeting work for you.
Get started with a budget
When it comes to budgeting, it’s important to be aware of the amount you bring home after taxes, the amount you spend on fixed expenses and how much you put into savings and investments.
A more accurate picture of your financial situation can be obtained by keeping a monthly record of your earnings, expenses and investments. There are online tools, including the TD Personal Cash Flow Calculator and the TD Financial Health Assessment Tool, that can be helpful when it comes to crunching those numbers.
Set clear financial goals and priorities
Ensure your financial objectives align with the kind of life you’ve envisioned for yourself. For example, if you’re saving for a down payment on a new house, consider putting a photo of your dream home where you can see it every day to stay motivated and achieve your long-term priorities.
Track your spending
Take time to examine your most recent bank statements or use a budgeting app to find out where your money is going each month. What’s the difference between what you’re earning and what you’re spending? Do you have enough cash in your savings account to act as a safety net?
Avoid impulse purchases
To avoid spontaneous or impulsive spending, give yourself a 24-hour block of time to consider whether you should make the purchase. Is it a need or a want? The 24-hour rule can help you to keep the focus on your long-term financial objectives, ensuring greater success in the long run.
Communicate clearly
Make time and space to discuss your financial needs, values and aspirations with friends and family. By sharing your financial plans with others, you’re not only keeping yourself accountable, but you may also inspire others to do the same.
Loud budgeting removes the stigma of talking about money and can help you stay on track and reach your financial goals sooner.
