Bernard O'Shea: Loud budgeting - has social media made financial savvy cool?

Thanks to TikTok sensation Lukas Battle, loud budgeting has become the ultimate cool kid on the financial block. 

It's not just about penny-pinching in silence; it's about shouting your financial goals from the digital rooftops and, in the process, reshaping the way we think about money. 

In one of his most popular posts, he likens the phenomenon with “sneaking candy into a movie theatre”. 

Who knew budgeting could be this hip?

The origins of loud budgeting stem from the societal pressure to spend lavishly, often exacerbated by influencers flaunting extravagant lifestyles on social media platforms. 

This trend has resonated deeply with Gen Z, seeking authenticity and empowerment in their financial decisions. This is where I get caught so often buying gadgets or clothes that (A) I don't need and (B) I can't afford.

So, how does one embark on the journey of loud budgeting? It's simpler than you might think. 

Start by openly discussing your financial goals and challenges with friends and family. Rather than hiding behind a facade of false abundance, embrace the power of saying "no" to unnecessary expenses.

The idea is to create a budget that reflects your values and priorities and don't be afraid to shout it from the rooftops. 

For instance, it's similar to myself declaring on social media that I'm currently on a weight loss journey (which I am, btw). 

It's a statement to people who follow my account that doesn't affect them, but I put myself under pressure to realise my goal. In essence, it's an accountability measure.

But dig deeper beyond the numbers and spreadsheets; budgeting has a profound physiological impact on our relationship with money. 

Studies have shown that budgeting can reduce stress and anxiety associated with financial uncertainty. 

When we openly discuss our financial goals and challenges, we activate regions of the brain associated with trust and social connection.

Openly discussing finances remains taboo, particularly in cultures where money talk is considered impolite or intrusive. 

I can guarantee you that at some stage living in Ireland, you've heard something like, "Don't talk about money. It's rude". 

There exists a cultural aversion to discussing personal finances openly. It may be rooted in a history of economic instability and social stigma; many Irish people prefer to keep their financial struggles hidden, fearing judgment or shame from others. 

This was flipped during the "boom" years. However, this cultural reluctance to talk about money can perpetuate a cycle of financial secrecy and isolation.

Growing up, discussions about money were often met with hushed tones and uncomfortable glances moreover because we didn't have any. 

Then I married an accountant and her circle of friends talk about money as something that be managed and manipulated as opposed to my gut feeling which was to bury my head in the sand. 

Loud budgeting simply give you the power of open dialogue regarding finances.

I’ve consciously tried to break free from cultural stigma and embrace a more transparent approach to talking about money management. 

The result? I don't feel shame in saying to someone, "I cannot afford that", or "I'm not in a financial position to go ahead", as opposed to "I'll get back to you on that", or the classic "I'll see."

You don't have to put your financial thoughts up on the Internet for all to see. 

I started each month by recording myself on my phone and openly stating what amount of cash I had coming in and what I needed to pay bills and groceries. 

It sounds idiotic, but do it. It completely changed my spending habits because I was looking at myself and telling myself, "This is what we got, Bernard".

It may be my odd brain, but it works better for me than writing down a budget on paper or an unreadable spreadsheet. 

Just declare it to yourself first, then decide if the world needs to hear it.