Just months ago, we were coveting Loro Piana cashmere baseball hats and $300 Smythson notebooks in the name of “quiet luxury” and justifying such expensive purchases using “girl math.”
But in 2024, there’s a new idea taking hold that overtly rejects the urge to overspend and promotes speaking up about saving money — welcome to the era of “loud budgeting.”
What is loud budgeting?
TikTok’s loud budgeting trend encourages consumers to take control of their finances and be vocal about making money-conscious decisions, rather than modeling purchase decisions after celebrities and their bottomless pockets — and financial experts love it.
The idea making waves on social media is centered around the everyday person, or the “average Joe,” according to Lukas Battle’s viral TikTok video.
“Let’s send a message to corporations about the national inflation level. Let’s take a stand,” Battle said.
“It’s not ‘I don’t have enough,’ it’s ‘I don’t want to spend,'” Battle explained.
In fact, the truly ultrarich are less interested in conspicuous consumption, he contends. In that way, loud budgeting is “it’s almost more chic, more stylish, more of a flex.”
‘Being loud can be empowering’
“Being loud can be empowering,” said Erica Sandberg, personal finance expert at CardRates.com. “With this process, you become proud that you bring a bag lunch, make your own coffee, or take the bus.”
Further, being open about your financial constraints can also help reduce anxiety and crowdsource solutions, she added.
“Not only can consumers find commonality with budgeting concerns, they can also find community to achieve broader goals and cut down on impulse purchases,” Sandberg said.
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Although a majority of all Americans say they are living paycheck to paycheck and feel increasingly strained by higher prices, consumers routinely spend more than they can afford on impulse purchases, many studies show — particularly on sites like TikTok, Instagram and Facebook.
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