In a world full of “must-haves” and endless social media spending urges, a powerful new trend has emerged: Loud Budgeting. This isn’t just about saving money; it’s about openly, and proudly, managing your finances. It’s especially popular with Gen Z, and for good reason!
What Exactly is Loud Budgeting?
Loud Budgeting is the concept of being smart with your money and openly sharing your financial goals and spending limits with others. It was sparked by TikTok creator Lukas Battle, who advocated for saving without embarrassment and challenging the pressure to spend lavishly. His idea? “Even if you have enough money, you don’t have to buy.”
Instead of flaunting luxury items, Loud Budgeting emphasizes financial planning, saving, investing, and making sensible purchases for long-term stability. It’s about “shouting to everyone about our financial goals” rather than showing off expensive brands.
Why is Gen Z Embracing Loud Budgeting?
This trend challenges traditional norms of keeping finances secret or spending to keep up appearances. Loud Budgeting allows individuals to achieve their financial plans without worrying about external judgment. Plus, the social media aspect creates communities where people share knowledge and experiences, inspiring more of Gen Z to adopt this lifestyle. It’s a refreshing shift towards financial transparency and empowerment.
5 Key Lifestyles of a Loud Budgeter
Thinking of joining the Loud Budgeting movement? Here are five common behaviors to consider:
- Review Income and Expenses to Set a Budget: The first crucial step is understanding your monthly income and outgoings. Categorize your spending and set clear budgets, perhaps using the 50/30/20 rule:
- 50% for needs: Housing, food, transport, utilities.
30% for wants: Dining out, entertainment, clothing.
20% for savings and debt: Emergency funds, investments, debt repayment. This budget is flexible and can be adjusted for unexpected expenses.
Set Clear Savings Goals and Share Them: Loud Budgeters have specific goals, like saving for a master’s degree or a house down payment. They consistently save and invest to reach these goals, and crucially, they proudly announce their progress. This public commitment motivates them and inspires others. They also have the courage to say “no” to invitations that don’t align with their financial plans. - Spend Money Wisely and Buy Only What You Need: This isn’t about being stingy. Loud Budgeters buy items that are genuinely useful and necessary, even if they’re expensive. They don’t fall for “must-have” trends or spend money on experiences just for social media bragging rights. For non-essential or expensive items, they use the “48-hour rule”: wait two days to logically assess if the purchase is truly needed, as the urge often fades.
- Look for More Economical Options: Loud Budgeters are resourceful. They’ll make coffee at home instead of buying it, cook meals rather than eating out, and buy frequently used products in bulk to save money in the long run. Before any purchase, they research and compare prices, looking for promotions to get the best deal. Every saved baht goes towards their financial goals.
- Choose Wise Spending Methods: While saving is key, Loud Budgeters understand that spending is unavoidable. The goal is to spend smartly. This includes using credit cards wisely by setting spending limits and controlling their budget effectively.
Loud Budgeting offers a fresh and empowering approach to managing your money. Are you ready to embrace financial transparency and become a Loud Budgeter?