Loud budgeting: How a TikTok trend can help your wallet in the new year 

In the era of social media and economic uncertainties, a new trend is emerging on TikTok—#Loudbudgeting. Move over lavish spending and quiet luxury; it’s time to declare financial boundaries in style.

This trend encourages users to boldly express their budget constraints and rethink their spending habits.

Loud budgeting

Loud budgeting, introduced by TikTok creator Lukas Battle, is a playful yet opposing stance to last year’s trend of “quiet luxury,” made famous by the hit TV series ‘Succession’.

While quite luxury was all about flaunting expensive purchases loud budgeting takes the opposite stance. The trend aims to make budgeting and financial consciousness fashionable.

It’s about acknowledging your limits, opting for financial responsibility, being transparent about it – all with a dash of humour.

How it works

When someone invites you out, a typical loud budgeting response might sound like, “Sorry, I can’t go out to dinner, I’ve got Dhs25 or Dhs50 a day to live on.” It’s not about lacking funds but a conscious decision to spend wisely.

Battle emphasises that loud budgeting is about winning by making smart financial choices. It’s turning away from overspending and redirecting those dollars towards more meaningful investments. And in times of rising inflation and a cost of living crisis, this trend captures the public mood about frivolously spending your discretionary income.

Growing popularity

Despite starting as a joke, loud budgeting has seemed to resonate with TikTok users, especially the younger demographic characterised by Gen Z. Grappling with student loan debt, rising rents, and economic uncertainties, Gen Z is saying no to spending and yes to saving.

By posting videos and mock loud conversations on TikTok, the serious and private matter of budgeting is allowing users to discuss money matters in a more casual and relatable way.

It might be for everyone

Loud budgeting navigates diverse financial landscapes by focusing on the average Joe or Jane. In a world of quiet luxury, it stands out as a relatable and inclusive trend. Users find solace in expressing their financial constraints openly, turning what could be a taboo topic into a lighthearted conversation.

Beyond the trend

Some TikTok users have adopted loud budgeting in practical ways, such as finding discounts through “buy nothing” groups, exploring high-yield savings accounts, and fostering open discussions on financial literacy.

Is #LoudBudgeting a good idea?

Financial experts generally support loud budgeting, seeing it as a creative way to encourage accountability in financial goals. Being transparent about financial constraints, especially with those close to you, can provide the needed support to stick to a budget.

However, caution is advised about oversharing personal financial information online to avoid potential security risks.

Individualised approach

While loud budgeting promotes financial fun, experts emphasize that everyone’s budget is unique. What works for one person may not work for another. Users are urged to take online trends with a grain of salt and customise their budgeting strategies to fit their personal situations.

Loud budgeting injects a sense of fun into managing finances, making it more approachable for a younger audience. It’s a reminder that budgeting doesn’t have to be a dull or intimidating task but can be an engaging and stylish endeavour.

So, whether you’re shouting it out on social media or just to yourself, loud budgeting is turning heads and wallets in a new direction.