Have you heard of loud budgeting? It’s a brand-new trend, and it’s been making waves on TikTok.
What is loud budgeting?
Basically, it’s a way of standing up to the pressures and expectations that a lot of us feel when we see extravagant lifestyles or ads for expensive products on social media. It can even apply to our friends, when they’re spending more than we’re comfortable with and encouraging us to do the same.
Instead of going along with all of the lavish spending that everyone seems to be doing, this is a way speak up and say that you’re going to be financially responsible instead.
How does loud budgeting work?
The loud budgeting movement does a few things that are new and probably beneficial to a lot of people. First, it’s encouraging people to be more open about their financial situations. That’s a good thing because it’s generally something people don’t talk about, and are sometimes ashamed of. Which just makes it more stressful. On top of that, when people are struggling financially and they don’t talk about it, they feel isolated—and so does everyone else in the same situation. So this new openness is an opportunity to make everyone feel better about their financial challenges.
Another benefit is that being open about financial limits is really helpful for accountability.
With loud budgeting, you might share your financial situation with friends or colleagues you spend time with. Something like, ‘guys, I can’t go out for drinks tonight, I’m trying to save money because my car needs new brakes’. Or ‘I can’t go to that concert right now, I’m living on $14 a day.’ When they hear that they can support you, and also help you stay on track. And once it’s out in the open, you won’t feel pressured to go along with and spend money on activities that aren’t in line with your financial priorities.
How did loud budgeting get started?
Believe it or not, loud budgeting started as a joke. Lukas Battle, a comedian on TikTok, did an ‘in vs out’ list for the start of 2024, and as part of it he explained that quiet luxury is out, but ‘loud budgeting’ is in. Later, he offered up a little more information. He clarified that loud budgeting means speaking out and being honest about what you want to spend money on and what you don’t.
The video took off. It was the perfect strategy to handle what everyone had been noticing—everything’s just crazy expensive. But there’s still pressure to keep spending like it isn’t—on luxury items, and going out for expensive meals and drinks—just to keep up with everyone else.
Financial advice from TikTok?
As loud budgeting gained momentum on TikTok, all the creators piled on. There are now videos with personal stories, loud budgeting challenges, and all sorts of creative tips on how to save. The hashtag #loudbudgeting had over 10 million views just three weeks after Battles introduced the concept.
How to get started
With so many ideas out there for how to start this brave new approach, there are probably a lot of options that will be a great fit for you. Searching the hashtag on TikTok is a great place to begin. The important thing is to make sure you don’t get pressured into anything that isn’t comfortable for you. Joining the loud budgeting trend just because everyone else is doing it is just as bad as overspending because you’re trying to keep up with the Joneses.
