Updated Online Budgeting Trends – Interview with Robin Growley

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Speaker1:
I'm speaking with Robin, growly head of consumer deposits at Bank of America. Robin, thank you so much for taking some time for me. I really do appreciate it.

Speaker2:
Oh, I'm glad to be with you today.

Speaker1:
Well, you know, there are a lot of new trends that we're seeing emerge online. I know that, um, loud budgeting is one that I've seen quite a bit and read quite a bit about. Cash stuffing is another one. Those are just kind of two examples here. What about those trends and others, and how can people really kind of sift through those and and determine what might be right for them.

Speaker2:
Yeah. You know, loud budgeting that is a newer trend that came from, you know, I won't say went viral on TikTok in early 2024. And it's really that instance where you're more comfortable declining social opportunities, like grabbing dinner with friends when you get that invite because you want to be able to stick to your budget. Right. And so you're feeling more empowered to share. Thank you so much for that invite. But I'm not going to go with you because I really want to stick with my budget. You know, in times past, those are the types of things that we really wouldn't talk about. We would just say, no, I'm not going to be able to go tonight. So, you know, really understanding whatever the trend is, making sure that you've, you know, you've done your research to figure out how can this align to your strategy is really important. And something like cash stuffing, that one has been around for quite a while. And, you know, it can be as simple as taking an envelope and literally stuffing cash in that envelope and writing your, you know, your budget category on it. And if it's for, you know, dining out, well, once you spend whatever cash you had in that envelope, then you're done for the month, right? That is what you budgeted and that's what you've spent. So I think understanding those trends are very important of what they entail. And then asking yourself, how does that trend fit into your broader financial goals, as well as your financial budget and planning techniques? Some folks are, you know, much more diligent in terms of, you know, getting into the details of their budget and tracking each week, but others need a system like, you know, cash stuffing where it's very obvious if there's no cash in the envelope, you're not going to be spending any more.

Speaker1:
Yeah, that's very true. And sometimes, you know, I mean, I where we live, um, there's not, uh, well, I wouldn't say there's not a lot, but there are there are a lot of places that have gone cashless. Um, and so that trend might not necessarily be the most convenient for certain people, but for others, it might be the absolute, um, you know, perfect solution for them to help budget because, you know, it's like it all depends on your current situation and also like just how you sort of operate in your daily life. Right?

Speaker2:
Um, I agree completely. Yeah. Budgeting is so personalized and so you can't compare yourself to your, you know, your friends or your family or, you know, or anyone else for that matter. You have to really understand what works best for you.

Speaker1:
Very good. And so, you know, I mean, when you're looking at your own personal financial situation, what kind of steps can people take to say, okay, I really need to to kind of clamp down on my budget. I am, you know, looking at these trends, I'm deciding what's going to be best for me. Should they, um, kind of, you know, first, though, just sort of get a grasp of where their situation actually is and do kind of a check in on their finances.

Speaker2:
Yes, certainly. You know, first things first, right? I mean, you have to understand where you are today to determine how are you going to get to where you want to be in the future. Right. And so that means making a realistic assessment of your current spending and your current savings. And you know, we have to ask ourselves the hard questions. You know, are are our financial habits today helping us make progress towards our goals, or do we find ourselves feeling stressed and anxious as we're trying to pay our bills each month? Right? Maybe we just don't have enough money because we've overspent. And you know, if you find yourself in that latter category, I always say it's okay because you can course correct, right? You can take it back to the basics of budgeting. And, you know, we find that many of, you know, our clients and consumers out there, they have great intent in terms of setting up a budget. But life gets busy and setting up a budget seems daunting. So it never actually happens, right? They're not able to track their spending against the budget because they don't have it. And you know when if that is the case, I always recommend just, you know, keep it simple with a with a budget. I mean, you can use the 50, 30, 20 rule. And that really is taking 50% of your after tax income and using that to cover your needs. So like your rent or your groceries, 30% for your wants, those are things like dining out, you know, buying a pair of shoes, going golfing, whatever it may be, and then 20% you put into savings. And once you really have those guidelines, then it's easier to take what you have found in your, you know, your financial assessment, your spending and your savings. Compare it against those kind of rules of thumb, the 50, 30, 20 and figure out, you know, are you overweight a little bit in terms of where you're spending on your want? And if so, then let's figure out where you can. Pull back and that'll hopefully enable you to start saving more.

Speaker1:
Yeah, great advice there because, you know, I mean, it's so important to not only, of course, focus on the here and the now. You know, obviously people have bills to pay and they, you know, you have to live, you have to eat and do all of the things. But you also, um, need to not forget future you and pay, you know, pay yourself um, as well. So, uh, great, great advice there. Well, Robin, just about time to, uh, to run here. We're just about out of time, but anything else that you wanted to share before we have to go?

Speaker2:
Yeah. If your listeners are interested in learning more about financial guidance or any tips or tools, they can visit Bank of America's website at Better Money habits.com.

Speaker1:
Easy to remember. Robin growly with Bank of America. Thank you so much for your time. I really do appreciate it.

Speaker2:
Yeah, thanks again for having me.

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