Whether you're purchasing a movie ticket or joining friends for dinner downtown, social expenses can add up. Balancing your social “wants” with your financial “needs” can feel very overwhelming.
The good news? If you are feeling this way, you’re in good company! The concept of “loud budgeting” – a trending financial wellness technique that involves transparency with your social circle on your financial situation – is on the rise.
Rockland Trust Financial Education, Development & Strategy Officer Julie Beckham doesn’t claim to be trendy, but has actually practiced this type of honest conversation around budgetary constraints with her friends for years. Julie helps Rockland Trust customers of all ages understand more about creating a budget and opening up conversations about money and financial goals with loved ones. Julie shares her thoughts on the “loud budgeting trend” and other techniques that can help you carve out a slew of healthy financial habits.
Setting up a Budget: Reassess Needs vs. Wants
Before you can be open with friends or family about what you're comfortably able to spend, you might want to have a good understanding of your spending and your goals. Though many people use 'budgeting' as a catch-all term for this exercise, Julie acknowledges that it might feel daunting. Instead of thinking about what you can’t spend, Julie recommends reframing your perspective by thinking about what you can spend.
“Saving responsibly doesn’t have to feel so restrictive,” Julie explains. “I recommend creating a spending plan. Keep items in your plan that are important to you, and eliminate the things that aren’t as important.”
When you reassess your financial situation, you may find passive costs you can cut. Do you have a gym membership you don’t use? Are you paying for a subscription service you can live without? Saving a bit here and there can add up and go a long way toward social activities.
“Taking inventory of your must-haves and low-priorities will allow you to more easily evaluate your capacity for social spending,” Julie says. “Focus on what you actually like to spend your money on and free up some extra cash for things you choose, with your priorities and goals in mind.”
How to Manage Stress (financial and otherwise)
Be Transparent
The people in your life want the best for you, and that includes your financial wellness!
“The concept of budgeting and saving money can be stressful for anyone,” Julie says. “Having a more open, honest dialogue about it can be empowering. There’s an element of community you gain by talking things out with family, co-workers and friends who might be in similar situations!”
It’s possible to stay true to your financial goals while maintaining a social life. Loud budgeting and disclosing your situation can seem intimidating, but it doesn’t have to be. Allowing yourself to be vulnerable with loved ones opens up an important conversation about priorities and boundaries that goes beyond budgeting.
Julie has experienced this firsthand. When her friends were planning destination weddings, Julie realized the costs did not fit into her life goals or her spending plan at the time. “I gracefully said, ‘Oh gosh, I can’t afford that’ and turned down the bridesmaid dresses, destination weddings and showers. And it didn’t hurt our relationship - we are still friends more than 20 years later!”
“It’s scary to state your values and goals, especially to important people in your life who may have differing opinions or feelings about your financial choices,” Julie says. “Having open and honest conversations about money, at any age, is extremely important and a healthy practice. The loud budgeting trend can help break the stigma around discussing money with family and friends – you can certainly consider this financial educator on board for that.”
It’s All About Balance
While Loud Budgeting is a lesson in healthy boundary setting, it’s important not to entirely shut yourself off from all social activity for the sake of your wallet. A financial balance is no small feat – it includes taking care of your needs today and creating a path toward the goals or milestones that matter most to you in the future. Though you may decide to turn down plans with friends to save that money instead, take care to not place too many restrictions on yourself and allow for some wiggle room to spend intentionally. Use loud budgeting to your advantage to initiate a larger conversation about money and values.
Plus, socialization and spending money aren’t mutually exclusive. If spending money on a fancy night out or a shopping trip isn’t in the cards, suggest a cost-friendly alternative. Thrifting and cooking a meal at home with your friends can be just as fun! Be open about your balance between social splurges with low-cost activities. And chances are, your friends might be looking to save a bit of cash as well.
You’re Not Alone
We’ve all been there – weighing your account balance against the benefits of going out on the town. Being intentional about your financial priorities and how you spend your money can make this less daunting. Downloadable our free financial goals worksheet to get started. 
