With inflation on the rise and layoffs being rampant, the loud budgeting trend is taking over TikTok for all the right reasons. The younger generation is more aware of the difference between their wants and needs. While social media is notorious for promoting exotic beach vacations, fine dining restaurants and luxurious shopping hauls, this new trend is asking you to be open and honest about what you can’t afford instead of glamorising the aspirational and often superficial spending habits. 

While there’s no rocket science behind the first money trend of 2024, the reason it has made us give it a green flag is because it is a good break from all the unnecessary stuff that is promoted on social media which makes the younger generation feel less about themselves. Loud budgeting allows you to proudly say no to things that are just not needed. 

What is loud budgeting?

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The concept was first introduced by TikToker Lukas Battle, who posted a video about the quiet-luxury fashion trend that dominated the social media platform in 2023. He announced that the trend is over and instead he’s opting for a lifestyle of loud budgeting for the new year. Amidst inflation and the rising cost of living, it’s no surprise that many people related to his video and supported this idea. 

He says in the video, “Sorry, can’t go out to dinner. I’ve got $7 a day to live on” and this video has already received over a million views.

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What do the experts say? 

Robin Taub, a chartered professional accountant and author of The Wisest Investment, says what’s really valuable about this new trend is that it’s taking people back to the basics of budgeting, like tracking monthly incomes and expenses, to help maximize savings. 

It’s all about pausing and thinking if you really need to make that expense and if not, then be vocal about your budget and stick to it. Don’t fall prey to the pressure of buying something for the sake of showing off or to put a tick against your wishlist. 

Taub also continues to say that for many young people who face the pressure to “keep up”, it takes building confidence to be able to say no to an expensive dinner or concert that they cannot afford. 

How to embrace loud budgeting? 

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The first step is to set a budget (duh!) Taub recommends using any of the tools already present within mobile banking apps like an expense tracker and a budgeting tool. Kristine Beese, CEO and founder of Untangle Money, says that when it comes to goal-setting, retirement planning should be at the top of the list even for young people. She points out that almost 50–80% of people’s incomes is usually earmarked for rent, utilities, phone bills and monthly subscriptions. Most often, we often see ourselves spending almost Rs.2000-3000 on monthly subscriptions. “We know that 80% of subscriptions are unused. And cutting this down can have a massive impact on your long-term savings.”

The benefits of budgeting

Beese also says that loud budgeting does a good job of normalizing the fact that most people are struggling financially. “It can be really supportive and it can almost be a relief to be able to be honest and more transparent about what you decide to do with your money”, says Taub. 

The idea of loud budgeting is not to stop you from making those frivolous expenses because if you don’t then you’ll end up spending more to chase that joy you are seeking. So if you love food, spend money on food and treat yourself but ensure that the rest of your budget does not take a hit because of that. 

While most TikTok trends leave us dumbfounded, this is one trend that makes complete sense to us and we would love to see more and more people embracing it and being audaciously loud about their budgeting. So, go ahead and smash those finance and budgeting goals, this year, babe!