Money comes with a lot of emotional baggage. Especially if you’ve ever been painfully aware of your lack of it.
Unless you grew up in a wealthy family, you probably have a few stories of financial embarrassment. Maybe you felt like you were the only kid at your school who couldn’t afford some fashion brand. Perhaps your family didn’t take fancy vacations like your cousins. Or maybe you were embarrassed to be seen getting out of your mother’s older car.
In each case, you have an unpleasant memory of a social situation caused by not having enough money.
It’s no wonder, then, that as people with these kinds of experiences become financially independent, they make sure they are never placed in this uncomfortable position again. So, they spend whatever it takes to be socially acceptable.
The credit card companies are only happy to help. Americans are now saddled with more than $1 trillion in credit card debt, and are paying interest and fees of more than $130 billion each year.1 (And that’s not even taking into account the merchant fees charged to businesses, which are built into the prices we pay.)
However, it’s difficult to build any kind of financial security, let alone reach long-term goals, when you are spending more than you bring in. Financially savvy people have always known this. Now some social media influencers are coming onboard.
Popular TikToker Lukas Battle is credited with coming up with the term “loud budgeting.”2 It simply means to be open with your friends and family about what you can and can’t afford.
Battle told Buzzfeed, “It was meant to be a funny idea that allows people to be financially transparent without being embarrassed.”
The “loud” part doesn’t mean that you’re obnoxious about money. Rather, that you’re willing to say out loud the kinds of things it’s typically easier to keep silent about.
According to etiquette expert Dian Gottsman, this kind of open communication is the opposite of being rude. You’re sharing your most important goals with the people you care about—things like saving for a house or fully funding your retirement.
“You shouldn’t feel ashamed or be on the defensive,” says Gottsman. “You’re communicating that you’re sticking to your financial goals. You should feel empowered by that. It will make people more comfortable around you.”
But sticking to budgeting goals doesn’t mean you’ve banished all fun from your life. One of the benefits of managing your money with a budget is that it enables you to enjoy things like fancy dinners and dream vacations without feeling guilty. You just plan ahead for them.
Your trusted fiduciary financial advisor is happy to share strategies for meeting your long-term goals while still enjoying life now.
If you ever have any questions about your investments or retirement plans, please feel free to give me a call at 801-545-0696.
Regards,
Mark Lund
Stonecreek Wealth Advisors, Inc.
11576 S State Street, Bldg. 1002
Draper, UT 84020
Sources:
1. http://go.pardot.com/e/91522/-in-interest-and-fees-in-2022-/956hyt/2359428729/h/T775bqN03fpxqdnxoz_1AsZ99MFSa17rEfcOU8Fz37s
2. http://go.pardot.com/e/91522/ially-healthy-says-expert-html/956hyx/2359428729/h/T775bqN03fpxqdnxoz_1AsZ99MFSa17rEfcOU8Fz37s
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