Loud Budgeting: Turning Up the Volume on Financial Transparency
January 22, 2024 January 22, 2024 /
If you’re looking for a way to save money, pay off debt, and reach financial independence, you might want to join the latest trend on TikTok: loud budgeting.
Loud budgeting is all about being vocal and transparent about your money choices, and sharing them with your friends, family, and followers.
It’s a way to hold yourself accountable, get support, and inspire others to do the same.
In this article, we’ll explain what loud budgeting is, why it’s popular, what financial experts say about it, and how you can use it to improve your finances. We’ll also share some other budgeting hacks and trends that can help you stretch your dollars further.
| Key Takeaways |
|---|
| Loud budgeting is a TikTok trend that encourages people to share their financial goals and boundaries with others. |
| Loud budgeting can help you cut back on impulse spending, make smarter money decisions, and build wealth. |
| Financial experts recommend loud budgeting as a way to create a positive money mindset and a supportive community. |
| You can start loud budgeting by making a budget, setting a savings goal, and telling your friends and family about it. |
| You can also use other budgeting hacks and trends, such as ordering groceries online, making a meal plan, and using cash envelopes. |
What is loud budgeting and why is it trending on TikTok?
Loud budgeting is a term coined by TikTok user Lukas Battle, who posted a video in December 2023 explaining his money resolution for 2024. He said:
It’s not ‘I don’t have enough,’ it’s ‘I don’t want to spend.’ My friend wants to go out to dinner. I’m gonna just text them ‘loud budgeting’ this month. I think financial transparency with your friends is something that you don’t have to be embarrassed about.
The video went viral, with over 1.4 million views and 175,000 likes as of January 22, 2024. It also sparked a hashtag, #loudbudgeting, which has over 9.8 million views as of January 2024. Many other TikTok users have joined the trend, sharing their own loud budgeting tips, goals, and challenges.
The trend is a response to the quiet luxury trend of 2023, which glorified subtle and understated displays of wealth, such as wearing designer clothes without logos, driving vintage cars, and living in minimalist homes. Loud budgeting, on the other hand, celebrates being frugal, savvy, and intentional with money, regardless of how much you have.
Loud budgeting is also a way to cope with the rising cost of living, inflation, and debt that many people are facing in 2024. According to a survey by Empower, 67% of Americans say their income isn’t keeping up with inflation, causing them to reevaluate their budget and cut back. Gen Z, in particular, is stressed about the housing market, student loans, and the job market.
By loud budgeting, people can take control of their finances, reduce their expenses, and increase their savings. They can also create a positive money mindset, instead of feeling ashamed or deprived. And they can find a community of like-minded people who can support them, motivate them, and learn from them.
What do financial experts say about loud budgeting?
Loud budgeting is not a new concept, but it has gained popularity and visibility thanks to TikTok. Financial experts have praised the trend as a way to improve financial literacy, accountability, and community.
According to David Stein, a former financial adviser and the host of the Money for the Rest of Us podcast, loud budgeting can help people overcome the psychological barriers that prevent them from saving and investing. He says:
One of the biggest challenges people face when it comes to money is they don’t talk about it. They don’t share their goals. They don’t share their struggles. They don’t share their successes. And so they feel alone. They feel like they’re the only ones that are having a hard time. And so by being loud about it, by sharing it with others, it creates a sense of community. It creates a sense of accountability. And it creates a sense of motivation.
David Stein
Similarly, Tiffany Aliche, also known as The Budgetnista, a financial educator and author of the best-selling book Get Good with Money, says that loud budgeting can help people create a positive money mindset and a supportive network. She says:
When you are loud about your budget, you are loud about your boundaries. You are loud about what you can and cannot afford. You are loud about what you’re working towards. And when you do that, you attract people who are either on the same journey as you or who are supportive of your journey. And you repel people who are not. And that’s a good thing.
Tiffany Aliche
However, sharing with such financial transparency also has some potential drawbacks, such as oversharing, comparing, and judging. Financial experts warn that loud budgeting should not be used as a way to brag, shame, or pressure others. They also advise that loud budgeting should not replace professional financial advice, especially for complex or sensitive issues.
How can you start loud budgeting and improve your finances?
If you want to join the loud budgeting trend and boost your financial health, here are some steps you can take:
- Make a budget. A budget is a plan that shows how much money you earn, spend, save, and invest each month. It helps you track your cash flow, identify your needs and wants, and prioritize your goals. You can use a spreadsheet, an app, or a pen and paper to make your budget. The key is to be realistic, flexible, and consistent.
- Set a savings goal. A savings goal is a specific amount of money that you want to save for a certain purpose, such as an emergency fund, a vacation, a down payment, or retirement. It helps you stay focused, motivated, and disciplined. You can use the SMART framework to set your savings goal: make it Specific, Measurable, Achievable, Relevant, and Time-bound.
- Tell your friends and family. Once you have your budget and your savings goal, share them with your friends, family, and followers. Tell them why you’re doing it, how you’re doing it, and what you need from them. Ask them to support you, cheer you on, and hold you accountable. You can also join online groups, forums, or challenges that are related to your goal.
- Use TikTok and other social media platforms. TikTok is a great place to find and share loud budgeting tips, tricks, and hacks. You can follow other loud budgeters, such as @lukasbattle, @thebudgetmom, @clevergirlfinance, and @herfirst100k, who post videos on topics such as debt payoff, investing, side hustles, and more. You can also use other platforms, such as Instagram, YouTube, Twitter, and Facebook, to connect with other budgeters and learn from them.
- Review and adjust. Loud budgeting is not a one-time thing. It’s an ongoing process that requires regular review and adjustment. You should check your budget and your savings goal at least once a month, and see if you’re on track, ahead, or behind. You should also celebrate your wins, no matter how big or small, and share them with your loud budgeting community.
What are some other budgeting hacks and trends that can help you save money?
Loud budgeting is not the only budgeting hack or trend that can help you save money. Here are some other popular ones that you can try:
- Ordering groceries online. Ordering groceries online can help you save time, money, and gas. It can also help you avoid impulse buying, stick to your shopping list, and compare prices. According to a study by Clutch, 54% of online grocery shoppers say they spend less money online than in-store.
- Making a meal plan. Making a meal plan can help you save money, reduce food waste, and eat healthier. It can also help you avoid ordering takeout, eating out, or buying convenience foods. According to a survey by The Simple Dollar, 69% of Americans say they spend less on food when they plan their meals in advance.
- Using cash envelopes. Using cash envelopes is a budgeting method that involves dividing your cash into different envelopes based on your spending categories, such as groceries, entertainment, clothing, etc. It helps you limit your spending, track your expenses, and avoid using credit cards. According to a study by WalletHub, credit card use has increased by 72% since only 2016, identifying a likelihood of overspending and potentially getting further in debt.
| Budgeting Hack | Description | Benefit |
|---|---|---|
| Ordering groceries online | Buying groceries through a website or an app instead of going to the store | Saves time, money, and gas; avoids impulse buying; compares prices |
| Making a meal plan | Planning your meals for the week or the month ahead of time | Saves money, reduces food waste, and eats healthier; avoids ordering takeout, eating out, or buying convenience foods |
| Using cash envelopes | Dividing your cash into different envelopes based on your spending categories | Limits your spending, tracks your expenses, and avoids using credit cards |
Conclusion
Loud budgeting is a TikTok trend that can help you achieve financial independence by being vocal and transparent about your money choices. It can help you cut back on impulse spending, make smarter money decisions, and build wealth. It can also help you create a positive money mindset and a supportive community.
Financial experts recommend this trend as a way to improve financial literacy, accountability, and community. However, they also warn that loud budgeting should not be used as a way to overshare, compare, or judge others. They also advise that loud budgeting should not replace professional financial advice, especially for complex or sensitive issues.
You can start by making a budget, setting a savings goal, and telling your friends and family about it. You can also use TikTok and other social media platforms to find and share loud budgeting tips, tricks, and hacks. You can also try other budgeting hacks and trends, such as ordering groceries online, making a meal plan, and using cash envelopes.
Loud budgeting is not the only way to save money, but it’s a fun and effective way to do it. By loud budgeting, you can take control of your finances, reduce your expenses, and increase your savings.
