Ready to Make Some Noise? Join the Explosive Phenomenon of LOUD Budgeting

Can you hear it? The tranquil hush that descends when we avoid discussing our finances, especially when they’re in a state of disarray. It’s a universal melody, isn’t it? But there’s a new tune in town. One that encourages us to crank up the volume on our financial goals and shout them from the rooftops. Yes, you read it right. Welcome to the world of Loud Budgeting, the financial trend that’s making waves and breaking the silence on money matters. 

The Birth of Loud Budgeting

As we step into 2024, a new social media money trend is making noise against the backdrop of the quiet luxury trend. Enter Loud Budgeting, a strategy that encourages open discussion about money goals with friends and family, while rejecting societal pressure to spend. This strategy aligns money decisions with personal values, creating a financial plan that truly reflects the individual.

Internet personality Lukas Battle sums it up perfectly, “It’s not, ‘I don’t have enough,’ it’s, ‘I don’t want to spend.’” It’s about the everyday person making conscious financial decisions. With inflation still above the Fed’s target and interest rates making financing less affordable, practicing loud budgeting can be a smart financial move.

The Mechanics of Loud Budgeting

Loud budgeting is a financial strategy that puts your money aspirations front and center for friends and family to see. It involves clearly vocalizing why you might choose not to spend money — even if you have it. This level of accountability can help you stick to a budget without feeling guilty or experiencing FOMO, or the fear of missing out.

“It represents a move toward transparency and community in financial management,” said Shawna Martin, CEO of Seedling Coach. And that’s crucial for demystifying budgeting, debt repayment and saving.

The Social Media Influence

Loud budgeting is all the rage on social media. Influencers are chiming in on the trend and offering scripts for different scenarios to help you stay on track. Some are even pitching goal suggestions, such as opening a high-yield savings account, paying off debt and maximizing retirement savings.

As a result, they’re incorporating money challenges on social media such as “No-Spend January” to only buy necessities this month and work on improving their relationships with money. Social media not only accepts but encourages people to openly talk about money, removing the stigma and mystery traditionally associated with financial discussions.

The Generational Shift

While anyone can hop on the social media trend of loud budgeting, millennials and Gen Z are more likely to follow this trend, since these two generations use their phones for communication, news updates and entertainment. This trend reflects significant generational shifts in personal finance, particularly among younger, social media-engaged generations.

It’s a shift that’s not only changing the way we talk about money but also the way we perceive and handle our finances.

The Impact of Lifestyle Inflation

Lifestyle inflation and keeping up with social media trends can be costly. It’s easy to get influenced into buying just about anything today — think the infamous Stanley cup. But this also extends to home decor, furniture and lavish vacations. These impulse buys can lead to guilt and other negative emotions that can put you in an unhealthy mindset when it comes to money.

There has been so much guilt around budgeting and other money topics. There are people who have feelings of shame for not having as much money as their peers and others who feel extreme guilt for having more money than their circle.

The Power of Community

Loud budgeting can help us focus on what truly matters, repair the emotional roller coaster that can surround budgeting and help us have healthy conversations about money with our family and friends.

Plus, social media can serve as a space to learn about money from friends and family who may not be financially literate. But be mindful about how much you share. For example, you may not need to tell people that you’re trying to save $100,000. Instead, it’s perfectly fine to say, “I’m saving for a big goal right now, so I can’t go to Cancun for your wedding.”

The Balance of Spending and Saving

Loud budgeting shouldn’t prevent you from spending on experiences if they’re important to you. But it can help you focus on where your money is going and weed out expenses you’d like to minimize. For instance, if you’re planning a night out with friends, you may decide not to drink to cut down on your bill, so you’re left with more money to put toward your financial goals.

Just make sure your goals and expectations are realistic and sustainable. And share them with your friends, so they can cheer you on. It also doesn’t mean you need to forgo a vacation altogether to meet your money goals. There are vacation dupes for that you’re going to get a similar experience and it’s going to fit within your budget.

Amplify Your Financial Success

If you have a community of people who want to see you win and are encouraging, loud budgeting can be a great way to build confidence in your personal finance decision-making. It’s equivalent to having a gym buddy versus going to the gym alone. When you’ve got someone who inspires you, builds your confidence and/or holds you accountable towards your goals, you have a greater likelihood of success at achieving that goal.

So, are you ready to turn up the volume on your finances? Remember, in the world of Loud Budgeting, silence is not golden. It’s time to make some noise!