TikTok is the king of trends; it has everything from cooking hacks to electrifying dances. However, this platform is not all entertainment. An exciting financial concept that might be well worth a shot called loud budgeting has been rising in popularity on the platform.
A TikToker named Lukas Battle coined the catchphrase by joking, “Sorry, can’t go out to dinner, I’ve got $7 a day to live on”. As you might have guessed, loud budgeting encourages an explicit approach to sharing one’s financial boundaries. The idea is to motivate people to take control of their finances and be firm by vocalizing their money-conscious decisions rather than feeling pressured into following the purchase behaviors of influencers and celebrities. This trend also aims to encourage accountability and ensure that people spend money within their financial boundaries and in alignment with their long-term future goals.
It’s refreshing to see how this trend has become a movement that many social media users are embracing—and it’s perceived as “cool “without making it a matter of embarrassment.
Financial experts are excited about this concept, and if you’re wondering if it’s worth a shot, then keep reading on!
First things first: How does loud budgeting work?
Loud budgeting is about being open about your financial management by discussing your financial struggles, goals, and strategies with those around you. Traditionally, people have been hesitant to speak about money-related matters, shrouding such issues in silence, and loud budgeting breaks this stereotype.
For example, if your friend suggests you join them for a fancy dinner, rather than figuring out a creative lie as an excuse, you take the honest route and tell them your actual financial situation.
Benefits Of Loud Budgeting
Promotes Financial Responsibility
If you want to get on the loud budgeting bandwagon, you need a budget. Communicating the boundaries around your budget with others helps you become more savvy with your finances and gives you a clearer picture of what you can afford in a given month. It also helps you to understand your income, expenses, and goals and paves the way for you to become more financially responsible. This can help curb those impulse spending habits and help you cultivate better money management habits.
Reduces Peer Pressure
Often, we overspend just to ‘fit in’. The perfect way to counter this is by openly communicating your budget constraints. This eliminates social pressure to overspend.
Moreover, there are plenty of societal taboos around discussing money and finances. When you follow the loud budgeting trend, you’re supporting the cause of making people more attuned to the financial situation of others.
For example, if your friend invites you to all their pre-wedding events you cannot afford to participate in, you can simply communicate this with them. As a result, they may even guide you in deciding which events are the most important ones to attend so you can stay within your budget.
Builds a Stronger & More Supportive Community
When you’re aware that people in your social circle are budget-conscious, you create a more supportive environment and reduce financial anxiety and stress. Feeling less judged about your financial choices can also help your mental well-being.
Moreover, sharing budgeting experiences, challenges, and tips creates a community of supportive individuals who are pursuing similar financial paths.
It Can Motivate You To Follow A Serious Financial Plan
It’s easy to get demotivated and find an excuse to overspend. However, when you publicly declare that tightening your expenditures motivates you to stick to it. It will also feel a greater sense of pressure to follow through, and as you keep doing this, you will find that it gets easier for you.
How To Get Into Loud Budgeting?
If this is a trend you want to be part of, you might be curious about where to start. A good place would be with your close friends and family. For example, suggest a game night instead of a dinner out. You can also talk more regularly about your money-saving habits and how much you’re learning about them. Talk about why you want to skip a movie night because you want to put those funds into a future down payment.
Remember, it’s cool to inform others of your financial motivations, but you have to be clear about it yourself. Visualize the life you want to live in the future and align your financial goals accordingly. You must be disciplined to become a loud budgeter, but it can be possible when you place your money goals at the forefront. You should be strong enough to understand that certain temporary compromises and discomforts are bound to come your way when you say ‘no’ to things that don’t support your financial goals.
This journey might be challenging, so reach out for help by joining groups of like-minded people and communities. At the same time, it’s essential to understand that loud budgeting is about holding yourself financially accountable rather than holding others responsible for their spending. Remember, not everyone is on the same journey as you, so be respectful of others’ boundaries and approach such discussions with sensitivity.
