What Is "Loud Budgeting" And Is It Right For Me?

Millions of people are looking for ways to save money effectively. Whether it’s based on the desire to own your own home, or you’re just trying to build up an emergency fund, any sort of viable money-saving option is probably something worth considering. Many people experience financial stress, largely because they’re not quite sure where to start when it comes to saving.

Over the last several months, loud budgeting has become a popular idea. While it’s not always a great idea to jump on every financial trend that appears on TikTok, loud budgeting has been nearly impossible to ignore, especially if you spend a lot of time on the app.

In a time when anyone can claim to be a financial expert and build a social media brand around their ideas, it’s certainly a good idea to weigh everything out, including the reputation of the person (or people) promoting it. With all of this in mind, learn more about loud budgeting, what it is, how it works, and how it can benefit you.

What is Loud Budgeting?

Loud budgeting is built around the concept of being proud of your attempts to save money. Many people who struggle with finances point to an inability to decline invitations from friends or family peoples as a major hurdle on their path to financial success. When your friends invite you out for dinner and drinks after a long week at work, it’s not always easy to turn down the invitation. When your cousin is getting married on a tropical island, it’s not easy to say that you can’t go because it doesn’t fit into the budget.

When you’re trying to cut back on your expenditures, you may feel embarrassed about telling your friends or relatives that you can’t make it to their next event. Obviously, you don’t want to hurt their feelings, nor do you want to make them mad. You don’t want to run the risk of not being invited to future events. Also, you may struggle with feeling embarrassed when it comes to telling someone that you just can’t afford to do something.

Loud budgeting requires total honesty, especially when it comes to social events. The trend was started by a comedian and TikTok content creator named Lukas Battle. Battle’s initial post about loud budgeting started as a joke about quiet luxury, but it resonated. Lukas took a humorous approach to the consumerism that is such a vital part of our modern society, especially when it comes to social media, and in early 2024, loud budgeting was trending across multiple platforms.

Ultimately, loud budgeting is about turning down invitations that you can’t afford without making up an excuse. If you’re trying to save money to wipe out your credit card debt and a friend invites you out for drinks after work, loud budgeting teaches that you tell the friend that you just can’t afford it right now because you’re trying to get out of debt. According to Battle, people who have jumped on the loud budgeting trend feel a bit of relief because they’re not putting themselves further into debt, nor are they trying to come up with a believable excuse as to why they can’t make it to an event they’ve been invited to.

Loud budgeting doesn’t only include telling people no, though. It’s really about developing a sense of accountability, both within yourself and with people in your life that you trust. Loud budgeting involves having regular conversations with people about what you’re doing with your money, your goals, and your progress. It’s not about bragging about what you’ve accumulated, nor is it about making yourself feel shame if you’re not in a good financial position. Instead, it’s about being open and honest about money, a concept that Lukas Battle acknowledges is foreign to many people.

Loud Budgeting Examples

In order to get a better idea of how loud budgeting works, it’s a good idea to look at some examples. While explaining the technical aspects of loud budgeting can help you understand the premise, looking at some specific examples can help you better understand how to put it into practice.

Assume that your mother calls you to let you know that your entire family is planning a family reunion in Florida, and everyone is going to spend the week at Disney World. Obviously, the trip sounds like fun, but you’re responsible for airfare or gas, depending on how you’re going to get there, tickets to the park, food, and more. Loud budgeting would involve telling her that a trip to Disney just isn’t in your budget at the time. By raising the issue of affordability, you may quickly find that other family members can’t afford the Disney trip, which may result in plans being changed to something that works for more people.

Loud budgeting also involves making some personal changes. If you follow any social media influencers, you’re probably constantly bombarded with products that they’re pushing. Now, loud budgeting does not mean that you send the influencer a message letting them know that you’re not purchasing the latest luxury item that they’re selling, but it does mean that you make a decision to prioritize your financial goals over the desire to buy stuff because an influencer is pushing it. If you’re struggling to ignore the sponsored ad from your favorite influencer, reach out to a trusted friend or relative who knows about your goals and tell them that you’re not going to make the purchase. Sometimes, sharing your decision can help you remain accountable.

Finally, assume that a close friend or coworker invites you out to dinner at the new, trendy restaurant in town. You’ve heard that the food is great, but it’s also pricy. A quick glance at the menu online reveals that you’re probably going to end up spending at least $50, and you’ve already gone through your “extra” money for this pay cycle. Loud budgeting involves telling the friend that a trip to that restaurant just isn’t in the budget this week. However, if you want to spend time with the person, you can invite them over to your house, or even to a different restaurant. Acknowledging your financial goals and turning down things that don’t align with them is a major part of loud budgeting.

Benefits of Loud Budgeting

Now that you know what loud budgeting is and what it looks like in practice, it’s important to understand why it’s such a viable tool for people who want to make major financial changes.

Perhaps the biggest advantage of loud budgeting is the fact that it allows you to experience transparency. One of the most exhausting aspects of financial stress is acting like you’re not dealing with any. You’ve probably spent years going to dinners you couldn’t afford because you didn’t want to disappoint the person who invited you and then dealing with the financial stress that paying more than you could afford caused. Perhaps you’ve gone through the headache of buying something just because a close friend or relative bought something, and then dealt with the stress that comes from not having enough money later in the week. When you’re upfront and honest about what you’re doing with your money, you can avoid the stress that you’ve experienced in the past.

Additionally, loud budgeting helps you overcome the fear of missing out, also known as FOMO. Ultimately, FOMO is built around prioritizing what other people want over what you want. Loud budgeting allows you to put your own needs, wants, and goals first. While that sort of thinking may seem counterintuitive, when it comes to your financial goals, no one cares more about your finances than you do. It’s up to you to prioritize your own financial well-being.

Finally, loud budgeting is beneficial in the same way that any type of budgeting is beneficial. It helps you become more aware of your own financial habits, allowing you to change the bad ones. Making and sticking to a budget is at the heart of any sort of financial turnaround, and loud budgeting can help you hold yourself accountable.

Is Loud Budgeting Right for You?

Ultimately, the budgeting approach that you take will depend on your financial goals and current position. There will undoubtedly be more financial trends that come from social media, and each of them will probably have their own list of pros and cons. In the meantime, if you’re looking for a way to improve your finances but feel like you’re not sure where to start, consider loud budgeting.