Loud Budgeting

Licensed to Say No

Just because it is the newest trend on social media does NOT mean the trend is a bad idea (TikTok Ramen is delicious). Loud Budgeting is the newest financial trend on social media and it may help you stick to your budget.

While it goes against the traditional ethos of don’t’ talk about money with friends, honesty amongst friends in what you can afford and where you will be focusing your budget can actually help you accomplish those goals. If friends want to plan a two-week trip to Spain but your focused on paying down student debt, an honest answer of why you are passing on the trip is better than a) your friends thinking that you don’t want to come or b) going on the trip and letting your student loan grow. By being upfront and honest about your budget, you have given yourself a license to Say No when something comes up that does not fit into your budget.

Additionally, by sharing your goals, you are creating accountability partners and hopefully surrounding yourself with people with shared goals. Whether it is losing a few pounds or saving a few dollars, declaring your goals to the world helps you commit to those goals..

While loud budgeting helps combat the peer pressure in personal spending, it can aslo be applied to your practice budget. Here are three ways to be financially responsible and open about your practice finances:

Prioritize Essential Spending. Just like in personal spending, a focus on the financial objectives of the practice will help you determine where spending is essential. Instead of spending on unnecessary luxuries to project success, focus on essential costs that contribute directly to business growth. For example, leasing a brand new BMW to look successful rather than giving an annual raise to your team will definitely not contribute to growth and will likely lead to team turnover.

Open Communication. Be clear about your financial situation with your business partners and your team. Set open budgets on everything from Amazon spending for office supplies to the number of team lunches the practice can afford. Most dental supply companies offer online budgeting options so your team member knows what the practice can afford. If no budget is discussed, no budget exists.

Patient Discounts. When requests for discounts coming in from family and friends, use loud budgeting to stress the importance of fair compensation for your knowledge and services.