Should You Give the TikTok Trend 'Loud Budgeting' a Try?

One of the latest viral trends taking over TikTok is "loud budgeting." The movement encourages people to be more transparent about their financial limitations. Instead of feeling guilty about turning down invitations to expensive outings, the trend inspires others to speak up and communicate what they're willing to spend their money on. Learn more about the benefits of loud budgeting to decide if you should try this hot new trend. 

What is loud budgeting? 

Every day, we're bombarded with advertisements that push us to spend more money. Unfortunately, many people struggle with overspending, resulting in costly debt. 

Many videos on social media glamorize overspending, but the loud budgeting trend hopes to change that. Instead of feeling pressured to overspend beyond their means, this fad inspires people to talk openly about their money goals with friends and family. 

It also lets people know they shouldn't feel embarrassed about being unable to or unwilling to spend money on expenses that don't align with their goals. They should focus on their goals and do their best to ignore outside pressures that could deter them from reaching them.  

The benefits of loud budgeting 

Being clear about what financial goals you're working toward and your current financial limitations can have its benefits. You'll clarify what you're willing to spend your money on and what purchases don't align with your goals. 

Doing this may result in you getting more support from the people closest to you. When they know what you're dealing with financially, they can help you stay motivated. 

Openly communicating about money with those closest to you may encourage your loved ones to make their own positive financial changes. It's easier to make changes when the people around you are taking similar actions. 

Building an emergency fund, paying off credit card debt, or saving for a future home down payment are examples of great financial goals to work on. When we're clear about how we want to spend our money and resist the pressure to overspend, it frees up more money to put toward important financial goals like this. 

Is loud budgeting right for you?

Could loud budgeting be a good strategy for you? If you're working hard to boost your high-yield savings account balance and hate overspending on costly outings and activities, being loud about your financial goals could help you be more successful. 

Three tips for success 

Want to stay on track as you tackle your financial goals in 2024? These tips may help: 

• Keep your goals top of mind: Outline your goals and then keep them in mind as you go about your everyday life. Using digital tools like budgeting apps or creating a pen-and-paper goal tracker may help you stay motivated.
• Spend your money on what matters: It's OK to spend on things that bring you joy. But be clear about what matters to you and be choosy with how you spend money. You'll feel more empowered when you spend money on things that matter to you. 
• Lean on your support system: Being clear about your financial goals will attract more like-minded people. Lean on your support system if you're struggling to stay motivated or need help along the way. You can be there for each other. 

For additional tips, check out our personal finance resources.