• Thu. May 23rd, 2024

How TikTok’s “Loud Budgeting” Will Help Reach Your Financial Goals

From seeing birthday vacations to Mexico or weekly spa visits on social media, it’s easy to feel like you should spend your money on life’s luxuries. But if you have plans to pay off your debts or build up your savings, the need for financial limits is crucial to reaching your goals. The latest financial trend taking over TikTok is “loud budgeting,” the no-shame approach to discussing financial boundaries and personal financial limits.

As “loud budgeting” gains momentum, its bold approach to financial management becomes increasingly recognized and supported by financial experts due to the data on American spending in recent years. According to a November survey of 2,098 adults conducted by The Harris Poll on behalf of Credit Karma, 69% of Americans reported having financial regrets in 2023. Additionally, 53% stated that their financial situation deteriorated last year, with 31% expressing regret over not saving enough money and 22% lamenting excessive spending.

The numbers show that although those in-the-moment purchases may cause temporary excitement, they will cause long-term detriment if you don’t manage your spending habits accordingly.

Where Did The Trend Come From?

TikTok comedian Lukas Battles, the trend’s creator, recognizes the importance of establishing these financial boundaries. With over 1.5 million views since his original video release in December, the influencer has created a trend with thousands of financial experts and savers sharing their saving journey and planning to begin “Loud Budgeting.”

“If you know any rich people, you know that they hate spending money. So it’s almost more chic, more stylish, more of a flex,” Battle said. “It’s not ‘I don’t have enough,’ it’s ‘I don’t want to spend.” Battles said in his viral video.

He developed this approach to empower individuals to confidently vocalize their money boundaries, resisting peer pressure to spend without feeling ashamed. The point of the trend isn’t about lacking funds; it’s about consciously choosing where to allocate them. The trend has now begun creating safe spaces for many to feel comfortable sharing their budgeting goals and not embarrassed in wanting to manage their money in the best way that works for them!

How To Loud Budget

If you want to take charge of your financial goals and establish boundaries in money management, it’s also about embracing behavioral change. If you typically say yes to every dinner invitation but find you save more by dining in, consider sharing this early in the planning process so your friends understand your boundaries. You don’t need to provide a detailed explanation, but giving your social circle a heads-up that certain outings may not align with your monthly budget is helpful.

Here are some key points to remember as you incorporate loud budgeting into your life.

Understanding Your Finances

Begin by meticulously tracking your income and expenses. Utilize tools like the Goodbudget or other saving tools apps to clarify your financial situation and set achievable goals. Additionally, consider seeking guidance from financial experts or attending workshops to deepen your understanding of money management principles.

Communicating Your Goals

While you don’t need to broadcast your financial aspirations to the world, communicating your priorities to close friends and family can foster understanding and support. Moreover, consider involving loved ones in discussions about financial goals, as their input and encouragement can strengthen your commitment to financial success.

Confident Communication

You owe no one an exhaustive explanation for your financial decisions. Keep your responses positive and concise, focusing on your objectives rather than defending your choices. Additionally, practice assertive communication techniques to confidently express your financial boundaries without feeling compelled to justify them.

Resisting Social Pressure

In a world where FOMO (fear of missing out) is rampant, staying grounded in your financial reality is important. Resist the urge to keep up with others’ spending habits and stay true to your own priorities. Surround yourself with like-minded individuals who support your financial goals and encourage responsible spending habits.

Exploring Affordable Alternatives

Quality time with loved ones doesn’t have to come with a hefty price tag. Budget-friendly activities can help you adhere to your financial plan while fostering meaningful connections. Additionally, consider exploring free community events or organizing potluck gatherings to enjoy socializing without straining your budget.

The Impact And Importance Of Loud Budgeting

The resurgence of student loan payments, mounting credit card debt, and the looming specter of inflation are all contributing to the momentum of this trend, particularly among members of Generation Z. Personal finance experts view the “no shame” approach of loud budgeting as a positive trend with staying power—an empowering message about setting boundaries and seizing control.

Loud budgeting isn’t just about saying “no” to extravagance—it’s about saying “yes” to financial freedom and peace of mind. By embracing this TikTok trend, individuals can pave the way for their future defined by smart financial choices and empowered decision-making.

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