What is loud budgeting? How your savings goals can help you save more

Loudbudgeting
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Keen social media users will have heard of ‘loud budgeting’ - a new financial strategy where you share your money aspirations out loud with the people in your life. 

Since it was conjured late last year, #loudbudgeting has apparently garnered millions and millions of views on Tik Tok.  

In a sense it’s like setting basic budgeting or savings goals, but the goals aren’t kept to yourself. By telling others why you’re choosing not to spend money on something and by being transparent about the reason you are putting money into your savings account, you essentially make an ‘out-loud’ commitment. 

The practice of loud budgeting has since gained traction among many financial commentators and experts, too, because they typically endorse the idea of talking about money matters and committing to financial goals. 

Loud budgeting and setting goals in 2024

Setting savings goals always comes up this time of year, generally used to help us plan the year ahead and make it a financially successful one.

Until now, most of us would typically write down things like, ‘create a budget’, ‘put some money in my savings account each month’, ‘cut down on spending’, and ‘track where I spend the most money’.

And yet, nobody really keeps us accountable with a ‘quiet budget’. A loud budgeting approach at least puts some pressure on ourselves to meet our savings goals, and perhaps even the praise of others if we indeed reach them. 

In this way, mere goal setting takes on a heightened role. 

According to an article produced by Deakin University, striving for goals gives a sense of achievement and is therefore crucial to our general wellbeing. 

“Working towards a goal allows us to feel like we’re actively engaging in a strategy to achieve a target,” writes Dr Melissa Weinberg, of Deakin’s Faculty of Health.

“The great thing is we don’t have to actually achieve our goal in its entirety in order to feel a sense of achievement. As we make progress towards that goal, our progressive achievement both makes us feel good and motivates us to keep working towards it. Feeling in control of the progress we’re making also helps us to keep striving.”

Making savings goals matter - loud or quiet

ANZ head of financial wellbeing, research and design, Mohamed Khalil says financial goals make saving, paying down debt and managing money easier.

“Setting goals is an important step in creating lifelong financial wellbeing habits,” says Khalil. “Using a milestone event to set financial resolutions is a great way to get on track for 2024.”

So whether you’re writing goals down or calling them out loud, where do you start?

ANZ has a few basic tips around money goals:

  • Break down your goals into smaller tasks – celebrating smaller accomplishments more frequently increases your motivation and makes a goal feel more achievable.
  • Regularly monitor your progress towards your goal – periodically checking in on your progress towards a goal almost doubles your chances of achieving your objectives.
  • Restrict your ability to deviate from your goal – wherever possible, make acting on your goal effortless or automated. Tools like ‘round ups’ or scheduled transfers on pay day allow a hands off approach to saving, putting money aside before it can be spent elsewhere.
  • Share your goals with friends, peers, or family (loud budgeting!) – the positive influence of peers has shown to increase accountability and motivation to stay on track.

With your goals and tactics in place, it’s time to review your savings account and the rate of interest you’re earning. A good interest rate is integral to a successful savings goal and so if you’re not currently on an above average savings interest rate (the current average according to the Mozo database is 3.55%), you’re potentially leaving money on the table. 

Start comparing some of the top savings interest rates available below and be sure to make the switch if your current savings account doesn't measure up.

Compare top savings accounts - last updated 24 February 2024

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure
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