The Rise Of ‘Loud Budgeting’ And Why Everyone’s Joining In
People are embracing “loud budgeting,” but what’s making it so popular? The concept went viral after a social media influencer mentioned it as something they’re doing this year.
So, what is loud budgeting?
According to the viral video, it’s a financial strategy that stresses being vocal about your expenses and financial situation. “Loud budgeters” feel that announcing their plans will lead to financial accountability. The concept is all about talking about your personal finances, such as goals, and boundaries on spending, and being transparent about it.
Let’s say you turn down an invite to a fancy dinner or a group getaway; you would then let people know it’s because you’re trying to save and pay off your credit card or stash cash for that future house. The key is to confidently embrace your financial mindfulness.
Why are people loud budgeting?
TikTok user @itslisasun said on the platform, “One thing I love about loud budgeting is that there is absolutely no shame to it.” She added, “There is no shame in wanting to save money and being frugal.”
Mia Westrap, known as @miawestrap on TikTok, is sharing her journey with budgeting loudly. She’s creating a practical money plan, reducing dining out, and trimming expenses like hair coloring. Her motivation came from recognizing that “lifestyle creep” messed up her finances.
And before you ask, “lifestyle creep” is the common pattern of spending more money as you earn more money, according to Business Insider. It typically happens after someone gets a raise, a new job with a higher income, or pays off debt.
Derek Ober, a financial advisor with Northwestern Mutual, told HuffPost that he believes that loud budgeting is a great approach for managing your finances. He also added that it gives other people participating in this trend a sense of camaraderie. “Telling others why you’re choosing not to spend money on something can both hold you accountable and provide positive reinforcement from other loud budgeters who are doing the same,” he told the outlet.
Rejecting a phony culture that glorifies wealthy influencers, unattainable luxury, and pretending to be wealthier than reality is seen by some as a conscious choice. Thanks to TikTok, it’s now socially acceptable to decline invitations and openly discuss your financial goals. Say goodbye to the idea of “Keeping up with the Joneses.”