Loud budgeting: amplifying your financial awareness

Case Study:

I’d always known that saving for my first home would require a bucket-load of discipline and sacrifice. And when I thought about the amount I needed for a deposit…well, it all seemed too hard. 

Whether it was a weekend away with friends, or the latest can’t-live-without gadget, I was too easily distracted and couldn’t seem to control my spending.

The problem, I believed, was that long term savings goals felt so unattainable that I saw no reason to go without the things I wanted now.

In short, I lacked motivation.

While meeting with my financial adviser for my annual review, I expressed how frustrated I was by a seemingly unreachable sum required to buy a home, and my inability to save.

That’s when they told me about loud budgeting. Loud budgeting, they explained, is a goal-oriented mindset. It starts with being willing to share your savings goals with trusted friends and family and being accountable to them.

For me, it was like a light came on.

It’s the opposite of how my parents managed their money; for them, discussing one’s finances was strictly taboo. 

But the transparency of loud budgeting is its driver, and definitely helpful when politely declining invitations to dinner or the movies, etc.

So, after talking it through with them, I decided to give it a try. We discussed how much I would need for a home deposit and they guided me through these simple steps:

1. Review income and expenses and draft a realistic budget.

2. Set a savings target, broken into smaller, manageable milestones.

3. Create a large colourful chart to plot progress, and keep it in a prominent place.

4. Utilise technology; many banks offer savings tracker apps. Additionally, the government has a range of savings and budget calculators at Moneysmart.gov.au.

5. Invite feedback and provide updates to the people around you – take them on the journey with you, their support is invaluable.

6. Stay focussed by visualising yourself achieving your goal, in my case, unpacking boxes in my very own home.

   
   

Loud budgeting became part of my weekly routine. Each movement of my tracker pin along my chart was incredibly satisfying, and then there was the sense of empowerment with every milestone achieved.

Fast forward about 16 months and my dream has become a reality. I have a deposit saved and am ready to reap the rewards of my hard work.

Look, I’d be lying if I said it was easy. There was the trip to Rottnest I reluctantly opted out of, and there were setbacks like new tyres for my car, and an emergency root canal.

But I also learned a lot too.

I learned that loud budgeting is more than just a savings concept. It’s even more than being accountable.

It was about sharing my dreams with loved ones. It was about celebrating each milestone with them.

And it’s about helping my sister set up her own loud budgeting plan.

So while loud budgeting may not work for everyone, it definitely worked for me. And now, I’m off to meet with a mortgage broker my financial adviser recommended, and I can’t wait!

I hope you found this article beneficial. I’m Mo Shouman, a financial adviser with 20 years of experience helping professionals save on tax and grow their wealth. Book your financial clarity meeting below and discover how you can take your finances to the next level. I’m proud to be the only adviser who provides a detailed assessment of your financial position—whether you decide to work with me or not!

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