Is There Merit to the TikTok Money Trend of Loud Budgeting?

TikTok is notorious for its trends. Some are cringy, some are downright dangerous, and others are insightful.

One of the latest TikTok trends, however, has people on both sides of the coin chiming in. It involves a concept known as loud budgeting. Coined by Lukas Battle, an influencer with more than 600,000 followers, it involves letting the people in your life know your financial goals. That means, if you’re invited out, Battle says you shouldn’t just decline, but decline with a reason to avoid the societal pressures. In other words, being loud about your finances.

But, is there merit to this trend? People seem divided.

How Does It Work?

The basic premise of the loud budgeting trend is that instead of making excuses as to why you can’t go out—or worse, blowing your budget to go out—you be upfront.

This could mean saying you don’t have the money, or you have other priorities you need to put your money toward in the meantime.

How to Loud Budget Successfully

In order to succeed at loud budgeting, which can essentially put people off if it comes across the wrong way, is to let your friends and family know upfront what you’re doing and why.

Perhaps you have a goal of being financially independent in 10 to 15 years’ time and excess spending will derail that. Clue your loved ones in on your goals. But also, remember it’s okay to splurge once in a while and treat yourself, because stringent budgeting with no enjoyment can lead to derailment.

Skip Out on Trying to Keep Up

I heard the phrase “keeping up with the Jonses” first when I was a teen. It means to try to compete financially with others. For example, if your friend buys a new car, you might be tempted to, as well, even though yours is perfectly fine, albeit a bit less shinier.

The best way to avoid temptation is to not indulge in it to begin with. It’s okay to admire your friends’ or family members’ purchases without having to buy the next shiniest toy yourself.

Be Flexible

Just because you’re trying to save money doesn’t mean you can’t go out at all. Maybe you don’t want to go to the expensive restaurant for dinner, but could you meet up with your friends after for a drink or a game of bowling?

Absolutely. Or, you could even schedule a pot-luck get together where you and your friends meet at one’s house for the night and everybody brings something.

Pros of Loud Budgeting

The main perk of loud budgeting, other than saving money, is that you won’t be alienating your loved ones. They won’t be wondering why you’re no longer going out with them. That also eliminates fear of missing out, because you can prioritize the activities you want to do.

Loud budgeting also creates a sense of financial awareness that’s so critical, especially in today’s times. Being fiscally smart is so important, especially when you’re young.

Cons of Loud Budgeting

As with any type of trend or budgeting tactic, as it may be, there are downsides, too. One of those is that not everyone is comfortable talking about money and by putting your financial situation out there, you could make others feel awkward.

Another con is some may take it wrong, but you can help approach that more diplomatically by offering an alternate suggestion.

The Bottom Line

Wanting to be fiscally smart should be lauded, it’s a great mindset to have, especially when it’s so easy to waste money these days. However, like any type of budgeting, you have to weigh both sides.

If you’re comfortable with loud budgeting, it can be a very viable way to avoid spending while letting your family and friends know the reason behind your decisions.