Where did Loud Budgeting go?
Back in 2024, around this time, a social media trend called “Loud Budgeting” took off.
Just one year later, I wonder where did all that hype go?
The very simple idea here is to provide a tactic to empower more people to be more comfortable about speaking up about their financial goals – out loud with others – what they are focused on and by doing so, what they are not doing as a consequence.
Here is an example:
Your friend wants to go out to dinner this week but you don’t really want to go because you’re trying to kill your mortgage debt. Sure, you don’t want to miss seeing your friend but at the same time, you don’t want to stretch your wallet too much either; you’d rather stick to your budget in support of your bigger financial goals – and so you tell them “no” or suggest a less expensive alternative.
All well and good.
In an example from TikToker Lucas Battle last year, who has been credited with coining this term, this isn’t just about declining a dinner date but instead adding the important qualifier with a why in your reply:
“Sorry, can’t go out to dinner, I’ve got $7 a day to live on.”
Loud budgeting not only helps describe what personal saving or investing goals might be, but also how you feel about it, in a transparent way.
To frame the emotional side from CNBC:
“The words you use to describe what you feel as it relates to your savings and spending and investing and borrowing and all other forms of financial activity — that’s a different skillset altogether, and one that we are even more lacking in” – CNBC.
Before social media, GenZ might be aware that GenX (my cohort) just said this and still do:
“I can’t afford it”
or
“Sorry, not now, I’ve got other priorities at the moment”.
I’ve used these replies many times in the past and I continue to use them where necessary.
I didn’t call it loud budgeting, then, it was just my way of managing my finite cashflow.
I guess I’ve used this blog in part to share some elements of loud budgeting over the last 15-years but I also confess I never really had a budget per se.
Instead, I’ve always focused on a system that forecasts cashflow and ensures our spending patterns are matching our needs and values. It’s a very simple spreadsheet with essentially four columns:
- Date
- Cashflow in/source
- Cashflow out/source
- Notes/comments/reminders.
That’s it – focusing on things that matter and largely in my control.
Source: Behavior Gap.
Besides, the word “budget” can be a trigger word for many. It could imply to some there are just too many constraints in their life – which could create more anxiety or stress. Trama is not good for the soul.
A year ago I wrote about this concept on my site and why this approach could still work for you:
A year later, although I don’t hear too much about loud budgeting any longer here are some timeless financial tips to manage your cashflow like I do (at any age):
1. Determine money in, money out – write it down
The actual budgeting aspect of loud budgeting or any related TikTok term is not new. Understanding money flowing in vs. money flowing out is what good cashflow principles are based on – which is what I’ve always focused on. So, to get started: create a spreadsheet, open a notepad, find an app or use any other tool you wish. Write it down – how much money comes in and how much money is flowing out; include sources like when, where or to whom.
2. Set priorities
Without an end in mind, how are you going to get to where you want to be???
Take time to write down (ideally separately from your cashflow tool) your financial goals – big, small or anything in between. I believe your goals should be specific, time-bound and measureable.
An example: You want to be mortgage-free, by age 50, in the year 2030.
I had that goal a few years ago before I turned 50.
Use a vision board or anything else to motivate you.
3. Track your spending
Once you understand what money is flowing in and what money is usually flowing out, track it, diligently.
Are there deviations or items that surprise you? Is your spending aligned to your priorities and things you really value?
Take time to examine your most recent bank statements, credit cart statements or use budgeting apps to find out where your money is going each month – and more importantly answer the tough questions like: are you spending more in a specific area than you thought you would? How does that make you feel?
This is not about blame or shame or at fault. Tracking spending is an exercise in raising awareness.
Once you understand where, when and how you are spending your money every month then you can start thinking about potential modifications – which includes better alignment to your priorities. Generally, you’ll have three difference choices to make:
- Earn more
- Spend less
- Cut back non-value added spending.
4. Avoid impulse purchases
Earning more and spending less money in some areas of your life are not always easy solutions but cutting back on areas that are not at all aligned with your priorities and values is usually the best place to start – avoiding impulse purchases is part of that.
Over time, repeating the cycle 1-4 above, I believe your cashflow management activities will improve.
Where did Loud Budgeting go?
Loud budgeting continues to be a concept one year later but with much less social media hype – the sparkle is gone and people have moved on to other new buzzwords. This concept was re-created by a younger generation to help them have some different conservations about money through social media that didn’t exist decades ago – including my cohort.
I believe whatever age you are or generation you’re a part of, TikToker or not, you’re never too young or too old to respectfully decline any invitation for financial reasons that are personal to you.
It’s your life, your money and only you can hold yourself financially accountable.
If putting your financial goals on social media helps you communicate with others – it helps you be accountable to you – go for it.
Mark
Related Reading:
This is our Financial Independence Budget – including what we intend to spend in 2025.
Mark
My name is Mark Seed – the founder, editor and owner of My Own Advisor. As my own DIY financial advisor, I’m looking to start semi-retirement soon, sooner than most. Find out what I did and how I realized Financial Independence to tailor your own path. Join the newsletter read by thousands. Always free.
