Have You Heard About Loud Budgeting?
Published on February 21, 2024
There’s a new social media trend—and no it’s not a dance or recipe—it’s more like a challenge. It’s called Loud Budgeting.
Much like salary and budget transparency that social media users have been posting about for years, Loud Budgeting makes the conversation about personal finances more normal and comfortable with friends and family.
“It’s not I don’t have enough; it’s I don’t want to spend,” Lukas Battle, a TikTok creator who coined the term, explained in his viral online videos. “Loud budgeting is about the everyday person, the average Joe.”
Battle, a comedian from New York City, wove the term in between jokes about telling your friend “Sorry, can’t go out to dinner—I have $7 a day to live on” or “I don’t want to spend gas money on driving to you to hear you talk about your ex for three hours.”
Obviously, Battle’s intention is to make his audience laugh about the relatable, personally exhausting reality that is economic stability in the U.S. right now. Many would say he accomplished that, but maybe unintentionally he also gave life to personal budgeting in a way that wasn’t previously named and, furthermore, gave people permission to talk about their personal finances out loud, taking the taboo out of the topic.
So, what can this look like in real-life practice? A big emphasis on Loud Budgeting is being open about financial decisions you’re making daily and about your larger goals.
Your personal finances are your business and not anyone else’s, so you shouldn’t ever feel pressure to share. This is an opportunity, however, to include your loved ones in on your journey as a support system.
It’s not uncommon that people will go over budget— often taking funds from savings— on activities with friends or family to avoid the affordability conversation. Loud Budgeting tries to combat that negative, uncomfortable stigma around saying “no” or “I can’t.”
Let’s use the example of friends going out to dinner. Everyone in the group message is discussing where to go and suggest places that will put you out at least $50 for the evening.
Now, your budget for going out is maybe $100 a month—and you already went out last week and have about half left. If you’re not comfortable spending the rest of that budget on this one dinner, you simply tell your friends “These options may be a little out of my budget for the month.”
Loud Budgeting doesn’t mean saying no every time. Rather it may be nice to share how sticking to your budget is going to help you achieve a long-term personal goal.
You can come to the table with some alternatives your friends will like, too! Other social media creators have hopped on the Loud Budgeting trend, loud budgeting with their friends by not going out to dinner instead doing coffee dates or hosting pot-luck book clubs.
You can even ‘Loud Budget’ with yourself. If you find yourself scrolling through your favorite online shopping sites or walking around your favorite store, you may try saying to yourself “I don’t need that” or “I can’t afford that” (even if you can) to help curb frivolous spending.
Just make sure you don’t take the term ‘loud’ too seriously… there’s no need to shout it, but just being open with yourself and others can help you stay accountable on your financial journey.
At the end of the day, Loud Budgeting is adaptable to you, your goals, and your lifestyle. It’s all about doing what makes you are comfortable and sharing with whoever is willing to support you and your financial goals.
