Loud budgeting is the latest buzzword in financial circles online, and it’s revolutionizing the way young adults approach their finances. This trend, which actually first emerged as a joke on TikTok in late 2023, is all about openly discussing and practicing frugality without the stigma of penny-pinching. Let's delve deeper into the reasons driving this phenomenon in 2024 among young Americans, and how entrepreneurs can use it to their advantage.
The Emergence of Loud Budgeting in the Face of Financial Challenges
Comedian Lukas Battle brought “loud budgeting” to the forefront in a viral TikTok video that has garnered more than 1.5 million views. The idea is simple: once you have determined your goals and budget, share your intentions with others through firm boundaries. People participating in loud budgeting are transparent about their financial limitations and prioritize saving over spending.
“If you know any rich people, you know that they hate spending money,” Battle said in the TikTok. “So it's almost more chic, more stylish, more of a flex. It's not 'I don't have enough,' it's 'I don't want to spend.'"
Bridal parties, skiing trips, summer vacations, and pricey dinners are examples where loud budgeting is helping people voice concerns about spending beyond their means. The concept resonates with many as it provides a modern twist to age-old frugality, allowing individuals to proudly prioritize financial stability over extravagant spending.
Mounting credit card debt, inflation, transportation costs, and exorbitant housing costs make saving a daunting task for many today. According to a survey by The Harris Poll on behalf of Credit Karma, 69% of Americans expressed financial regrets in 2023, with 53% reporting a worsened financial situation. The return of student loan payments exacerbates the situation, particularly for millennials and Generation Z.
By reframing budgeting as a deliberate choice rather than a limitation, loud budgeting empowers individuals to take control of their financial narratives, especially amid economic uncertainty.
Entrepreneurs Can Benefit from Loud Budgeting, Too
With business overheads soaring and profit margins shrinking, loud budgeting prompts entrepreneurs to reevaluate spending habits and set clear boundaries with clients. Around 45% of business owners find themselves working for free or offering discounted rates up to 75 times a year, according to a UK Capital on Tap study. While the old saying “spend money to make money” might work for some, loud budgeting can help businesspeople set red lines with their spending or avoid freebie friends-and-family favors.
Yet this doesn’t have to mean underwhelming your customers; it can be as simple as sticking to remote video calls rather than in-person client meetings when you can’t justify the cost of traveling, or of covering a round of coffee for an uncertain lead. Loud budgeting can help entrepreneurs better value themselves and their services without compromising on quality.
Conclusion
Loud budgeting offers a refreshing approach to fiscal responsibility. By fostering open discussions, prioritizing savings, and empowering individuals to make financial decisions that work for them, this trend transcends mere budgeting—it's a lifestyle choice. As we navigate uncertain economic landscapes, embracing the principles of loud budgeting can lead to greater financial resilience and peace of mind.
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