Social media often gets a bad rap, and rightly so, because it’s easy to encounter misinformation and bad advice about many things in life. But sometimes there are one or two tendencies that even experts can put off.
One such trend is “loud budgeting,” which is trending on TikTok.
With the constant presence of “influencers” on social media platforms like TikTok and Instagram these days, it’s no surprise that there would be some backlash against any pressure towards impulsive spending. I follow several people on Instagram who are trying to “take away the influence” of their followers from unwise spending. They want to help people be more intentional about what they spend their money on.
“Budget Out Loud” encourages us to be more open about managing our money and takes this concept further by letting our friends and followers know about our money goals so they can hold us accountable. Let’s go one step further.
“Big-scale budgeting provides a way to challenge the social norms that support healthy financial habits,” said Julie O’Brien, head of behavioral science at US Bank, in a recent news release.
Instead of the old concept of “keeping up with the Joneses,” we can think of ways to encourage each other to stick to our money goals.
For example, one TikTok influencer encourages those who follow her to set aside a rainy day fund, tackle debt, contribute to retirement, and find ways to increase their income. There is.
What exactly is “major budgeting”? “Major budgeting is all about openness in financial management,” O’Brien said. “It means breaking the traditional silence about money matters and discussing your financial goals, struggles, and strategies loudly and proudly with those around you.”
At least when we’re young, we often think we have to maintain a certain level of spending. Usually it’s because I see my friends going to concerts, shopping, or spending money. Our assumption, often wrongly, is that they have the money to cover everything. Maybe that’s true, but maybe you’re just in debt.
Big budgeting can help with that. “For example, don’t be afraid to say no to an expensive concert with all your friends or brunch every weekend,” says O’Brien. “Think strategically and balance luxuries big and small. Figure out how many things you can say yes to and how many things you can put aside to save so you don’t feel completely left out.” Please choose. Be proud that you took the money you saved for a night out and moved it into an account that specializes in savings goals like travel, loan payments, and emergency funds. ”
One TikTok influencer, riding on the “budget out loud” trend, is even offering alternative destinations (vacation ducks) that offer the same experience as more expensive locations. That way, with a little creativity, you won’t have to feel like you’re missing out on everything in the name of saving for retirement.
Creativity is also an important factor when trying to perform large-scale budgeting on your own.
“Big budgeting efforts start with your closest friends and family,” O’Brien said. “Use high-stakes strategies to influence your plans, like offering to play a game in the evening instead of eating out. You can also find support in like-minded communities, like Reddit or Look for groups on Facebook focused on personal finance, where people are already thinking seriously about their gains and losses.”
O’Brien also suggests learning more about your own spending habits and knowing your credit score. The more you know, the better decisions you can make. Just be careful not to share too many details about your money matters. Identity theft remains an unfortunate reality today.
She also recommends not keeping good tips to yourself.
“Don’t be shy,” O’Brien said. “Sharing is caring. Don’t keep these money-saving tips to yourself. And don’t hesitate to share about skipping movie nights to add to your future down payment.”
who knows? Maybe you’ll be the one to help others get started on the path to better money management.
• Joan Oliver is a former associate editor at the Northwest Herald. She has been affiliated with the Northwest Herald newspaper since 1990. Contact details are as follows: jolivercolumn@gmail.com.
