Move over “Quiet Luxury” because 2024 is heralding the era of “Loud Budgeting,” a new trend gaining momentum, thanks to the influence of social media giant TikTok. If 2023 was characterized by subdued and expensive aesthetics, 2024 is all about being upfront, honest, and assertive about your financial choices.
The term “Loud Budgeting” was coined by TikTok user @lukasbattle, who introduced the concept through his in/out list, capturing the attention of followers and earning praise for its sheer genius. In a separate video, Battle delved deeper into the meaning of loud budgeting, positioning it as a counterpoint to quiet luxury—a trend epitomized by celebrities like Sofia Richie and Kendall Jenner, characterized by a minimal, understated, and expensive aesthetic.
But what exactly is Loud Budgeting, and how can you make it a part of your financial goals for 2024? Let’s explore this burgeoning trend and gain insights from financial experts on how to embrace it successfully.
Understanding Loud Budgeting
In essence, Loud Budgeting encourages individuals to be forthright about their financial situations, empowering them to take control of their spending. It shifts the focus from trying to emulate celebrities to concentrating on personal financial goals. According to @lukasbattle, it’s about coming out of financial situations feeling like a winner, emphasizing the shift from “I don’t have enough” to “I choose not to spend.” This approach seeks to normalize financial discussions, fostering open conversations about money within friend and family circles.
Finance expert Georgia Galloway at Finbri acknowledges that younger generations, in particular, are becoming more comfortable discussing their finances openly. This shift may be attributed, in part, to the ongoing cost of living crisis, creating a shared experience that makes financial conversations more accessible.
The concept of Loud Budgeting aligns with the broader trend of de-influencing on social media, where content creators encourage followers not to succumb to peer pressure or popular trends. This approach promotes prioritizing savings goals and values over mindless spending, contributing to a healthier relationship with money.
Pros and Cons of Loud Budgeting
- Open and Honest Discussions: Loud Budgeting normalizes transparent discussions about finances, fostering a sense of empowerment.
- Empowered Decision-Making: It can reduce the anxiety associated with keeping financial worries to oneself, empowering individuals to make deliberate spending choices in line with their goals.
- Realistic Relationship with Money: Loud Budgeting helps individuals develop a more realistic relationship with money, identifying and addressing patterns like emotional spending.
- Bridging Friendship Wealth Gap: By being firm about what one can afford and aligning spending choices with financial goals, Loud Budgeting can bridge wealth gaps in friendships.
- Potential Friction: Misalignment with friends who may not share the same financial priorities can lead to friction.
- Communication Challenges: Communicating financial constraints to friends may require honesty and alternatives to avoid misunderstandings.
How to Implement Loud Budgeting
- Track Finances: Keep a close eye on your finances and expenses to create a budget tailored to your needs. Trial different budgeting methods to find the one that works best for you.
- Define Financial Goals: Clearly define realistic and clear financial goals, such as saving for a house, paying off debt, or building an emergency fund.
- Be Intentional with Spending: Once you’ve established your budget and financial goals, be intentional with your spending. Understand exactly how much you can afford on non-essentials.
- Long-Term Thinking: Consider your long-term financial goals and work backward to align your budget with your aspirations.
- Explore Investment Options: Investigate investment opportunities based on your individual goals and circumstances. Ensure your savings are in an account with the highest interest rate available.
As 2024 unfolds, Loud Budgeting emerges as a compelling approach to financial well-being. It encourages individuals to be proactive, intentional, and honest about their financial choices, fostering a culture of empowerment and responsible spending. Whether you’re a TikTok enthusiast or simply seeking a healthier financial mindset, Loud Budgeting could be the trend to define your financial journey in 2024.