"Making a public declaration to rein in spending helps tighter budgets stick... an idea supported by behavioral economics research," according to an article by Oyin Adedoyin in The Wall Street Journal.
This concept of declaring your intentions to change behavior is similar to sticking to your New Year's resolutions to get more exercise. While not a new concept, the idea is to let those close to you know your goals so they will help hold you accountable... for your spending and your exercise. Advertising your spending goals with others serves as a commitment device.
"Loud budgeting began as a joke, said Lukas Battle, the 26-year-old comedian who coined the term in a December TikTok video after a night of over-spending." it is a way to push back against peer pressure to overspend when doing it just to get along and go along with your crowd.
Maybe it's time to get loud with your financial goals for 2024.
BTW, I dislike the word "budget," and much prefer a "spending plan."
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