What Is Loud Budgeting?

Loud budgeting is a trend that encourages people to openly discuss their financial priorities and constraints. Originating from a TikTok joke by comedian Lukas Battle, it has resonated with many, especially Gen Z and millennials, who face financial pressures from credit card debt, student loans, and lifestyle inflation fueled by social media.

Examples of Loud Budgeting

Here are some real-life scenarios where loud budgeting can be applied:

• Social Gatherings: If a friend invites you to an expensive dinner, you can suggest a more budget-friendly alternative or a different date.
• Influencer Temptations: When tempted by luxury products promoted by influencers, consider how these purchases fit into your financial plan.
• Family Trips: If a family reunion trip is beyond your budget, discuss affordability openly. You might find others share your concerns.

Pros and Cons of Loud Budgeting

Pros

• Transparency: It allows you to be open about your financial challenges, inviting others to do the same.
• Freedom from FOMO: Helps you prioritize what truly matters to you, reducing the fear of missing out.
• Financial Self-Awareness: Encourages sticking to a financial plan amidst rising expenses and debt.

Cons

• Oversharing: Not everyone is comfortable hearing about financial issues.
• Lack of Diplomacy: It may not always be the best approach in sensitive situations.
• Narrow Focus: Should be part of a broader financial strategy for maximum impact.

5 Ways to Practice Loud Budgeting

1. Share Your Financial Priorities: Be open about your budget constraints when declining social invitations.
2. Seek Allies and Accountability Partners: Find friends and family who support your budgeting goals.
3. Forget the Joneses: Avoid unrealistic lifestyle expectations promoted by social media.
4. Find Flexibility: Look for ways to balance social activities with your budget.
5. Know Where the Fun Is: Explore affordable entertainment options.

The Bottom Line

Loud budgeting can be a small but significant shift in how you manage your finances. It encourages setting a budget and spending consciously, which can be game-changing. If you’re inspired to take control of your finances, consider opening a high-yield savings account or exploring balance transfer credit cards and personal loans to lower your interest rates.

For any mortgage service needs, call O1ne Mortgage at 213-732-3074. Our team of experts is here to help you navigate your financial journey with confidence.