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Trying to save money, but your friends are constantly inviting you out? Tired of feeling pressured to say yes to plans only to regret spending later? Loud budgeting can help.
This trend — which went viral on TikTok earlier this year — is all about making your budget and spending priorities known to everyone. It means talking about your financial goals and money struggles openly, without shame.
How can you make loud budgeting work for you? Here’s how to get in on the trend.
What is loud budgeting?
TikTok user Lukas Battle coined the term “loud budgeting” in a video last year. He defined loud budgeting as not hiding the fact that you’re skipping a family vacation or dinner with friends because you don’t want to overspend.
Loud budgeting means communicating with others about your spending habits while sticking to a defined budget. This could include:
- Sharing your spending limits with friends
- Providing updates when you hit (or exceed) a spending goal
- Being vocal about your financial choices
- Celebrating when you hit a savings milestone, pay off debt, etc.
- Admitting when and why you made an impulse purchase
- Asking for encouragement if you feel tempted to overspend
Fans of loud budgeting say being upfront can lead to increased accountability on your journey to financial freedom. Far too many people hide their financial struggles, says Brandon Ashton, director of retirement security with Cornerstone Financial Services.
“The lack of open discussion about personal finances most definitely makes it more difficult for individuals to save money and stick to [their] budgets, especially in social situations where there may be pressure to spend,” he says. “Pressure by peers to ‘come along’ for fear of being labeled a ‘cheapskate’ are big reasons why many people stay quiet regarding their budget.”
Why is loud budgeting so popular now?
While budgeting itself is nothing new, it represents a cultural shift — especially for younger Americans.
Rising student loan debt, a challenging job market, and economic uncertainty make it harder for Gen Z to achieve financial security. It may lead to younger adults being much more open about money realities.
Not only are these conversations becoming more normalized, but social platforms like TikTok and Instagram make oversharing about any topic incredibly easy.
The hashtag #loudbudgeting has over 20 million views on TikTok so far, and many financial experts and ‘finfluencers’ have weighed in on the trend. Some offer tips on how to talk more about money, while others provide suggestions on how to reach your savings goals, like opening a high-yield savings account or paying off debt.
Can loud budgeting actually help your money?
Maybe, but to loudly budget means you need to budget in the first place. It’s easy to say you’ll save money and build an emergency fund. It’s more difficult to create a budget and plan to make it happen.
But telling your family, friends, and followers that you want to spend less and save more can help provide a sense of accountability and external motivation. It can indirectly help you build your savings, avoid overspending, and pay down your debt.
How? If you share that you’re in active savings mode, your friends and family may be less likely to pressure you to spend. And if fewer people are asking you to spend money, you may be less likely to break your budget.
Speaking about your financial goals could lead to more candid conversations with others. Family members or friends may be more likely to share their own experiences with money and teach you a thing or two.
What loud budgeting looks like practice
Maybe a friend wants to go to a pricier restaurant for dinner. Instead of going along with it, you could tell them this restaurant doesn’t fit into your budget and propose a less expensive option. Or, you could suggest a drink at your local coffee shop or a walk through the park.
This might not seem like a revolutionary move. But if you’ve never been conditioned to talk about money, it can be hard to bring it up. Some people may think the social stigma of saying ‘no’ outweighs the financial consequences of overspending.
But it doesn’t have to be this way. Loud budgeting encourages people to break this old-fashioned mindset and be more upfront.
How to make loud budgeting work for you
A key aspect of loud budgeting is setting clear goals. It’s not enough to say that you want to save money. Your goals need to be specific and actionable — like saving $1,000 a month or paying down $5,000 of credit card debt.
From there, you can make a step-by-step plan to make it happen.
If you’re inspired to give loud budgeting a try in your financial journey, here are some best practices:
- Start small: Don’t feel you need to share your entire financial inventory from day one. Begin slowly by telling a close friend or partner you want to cut back. Get comfortable talking about money before telling more people.
- Know your motivation: Why do you want to loud budget? Are you seeking accountability and emotional support or hoping to bond with people over shared financial goals? Getting clear on your “why” allows you to budget correctly.
- Set boundaries: Decide what budget or spending information you want to keep private to maintain healthy boundaries.
- Join a community: Finding like-minded people focused on budgeting, getting out of debt quickly, or building wealth is important.
- Have fun with it: At the end of the day, loud budgeting should energize you. Try viral budgeting challenges and get creative with different ways to cut back and save. As Ashton says: “Use your imagination. It’s free.”
The bottom line
Loud budgeting might seem like a fad, but the idea of sharing your financial goals without fear is a good one. The more you share your budgeting and saving goals with others, the more likely you are to follow through on your financial plans.
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