We’ve all heard of the term budgeting before. In fact, consumers often hear the word and instantly feel some sort of reaction—whether it’s guilt or satisfaction. But have you heard of “Loud Budgeting?”
Loud budgeting is currently trending amongst many social media platforms, specifically Tiktok. This trend started earlier in the year, when TikTok creator, Lukas Battle, posted a video describing the topic. The video has since gone viral with millions of views and has even been discussed amongst major news networks.
So what is Loud Budgeting?
Loud budgeting is a money-saving technique that involves declining social opportunities, such as grabbing dinner with a friend or going on that weekend getaway trip—when it puts your financial goals in jeopardy, and telling people that’s the reason you aren’t going.
In an age where Americans are spending more money now than ever before, loud budgeting might be a helpful trick to help many save. Because even with inflation, Americans are still choosing to splurge more and this is most likely due to the fear of missing out (FOMO).
When it comes to maintaining our relationships, it can often be difficult to forgo the catch-up brunch or the friend group vacation everyone says you’ll remember forever when you have money on your mind. So individuals often feel like they have no choice but to begrudgingly accept the invite—and the financial ramifications that may follow.
The idea with loud budgeting is to simply empower more people to be comfortable with speaking up about the financial goals that are top of mind right now.
Is it the best tactic?
Ultimately, it’s up to the individual. Some might argue that it’s too personal while others might believe it’s holding them more accountable towards achieving their financial goals. The mindset does prioritize saving money, but perhaps there is a happy medium. Such as setting back funds into a savings account with each paycheck. But also allowing yourself some financial freedom and fun every once in a while.
At ORNL Federal Credit Union, we want you to learn and thrive! If you have any questions in regards to financial education or our products and services, please contact us. We would be happy to help!