Tired of everyone trying to subtly show off how rich they are – or at least appear to be?
If so, then you’re not alone. Gen Zers (as well as many others) are becoming fed up with the “quiet luxury” trend of 2023. This is when someone casually wears certain expensive items or spends their money in ways that signal to others how supposedly wealthy they are.
In response, more and more people are taking to social media to inspire a new financial lifestyle trend for 2024: loud budgeting.
What is Loud Budgeting?
Have you ever received a compliment on the shirt you’re wearing, and then proudly told that person that it only cost $5 or came from a thrift store? Or maybe you declined an expensive dinner out with friends because you knew that it would impact your ability to pay your other bills this month?
If so, then you’re already familiar with the concept of loud budgeting. Loud budgeting is being obvious and forthcoming about your frugality.
This is not to be confused with being cheap or tightfisted. Loud budgeting is about taking the power back. You’re acknowledging publicly how you’re managing your finances and showing no regrets – despite the judgment it may bring from others. This enables those who practice it to have a better sense of control over their money instead of the other way around.
It’s no surprise that loud budgeting is a growing trend on TikTok, especially among Gen Z. While many videos on these platforms appear to show young people vacationing at exotic locations and eating at fancy restaurants, the reality for most is quite different.
According to a study by consulting firm EY, 52% of Gen Zers are afraid of not having enough money while another 39% are afraid of making the wrong choices financially. Combine this with the constant imagery of other people appearing to “have it all” and live a life of luxury, and it can bring about some unnecessary feelings of anxiety and inadequacy. Hence, loud budgeting can be a healthy alternative to consumerism by helping young people make more pragmatic financial choices and stay within their means.
The Principles of Loud Budgeting
Although the name may be new, loud budgeting is not much different from the fundamentals of good frugality. Essentially, it comes down to five important characteristics.
1) Be True to Who You Are
Everyone is guilty at one time or another of having used their money to find external validation. Yet, the flaw in this approach is that we’re asking for something from an environment that will never be satisfied.
Playing “Keeping Up with the Joneses” never leads to true happiness or fulfillment. Instead, find that sense of worth in yourself and be whoever you want to be. Express this to the world and don’t let the opinions of others cloud the goals you’ve chosen for yourself.
2) Put Your Financial Priorities First
Again, when we don’t control our money, money controls us. This can originate from the expensive influence of others, or even from an internal insatiable human instinct to acquire more than what we need. To defy this part of our brain’s programming, we need to decide what it is we want to accomplish with our money and how we’ll get there.
If that means having to say “no” once in a while, then so be it. The emphasis of loud budgeting is to unapologetically make your position known. If saving for a down payment or simply trying to stay within your budget is what you want to accomplish, then who is anyone else to tell you otherwise?
3) It’s Not “I Don’t Have Enough Money”
Loud budgeting isn’t just for those who are poor or struggling. In fact, many people who are saying no to certain purchases can certainly afford them! They’re just making a conscious choice not to.
This is an exercise in self-resilience that good budgeting develops. Anyone with an income – whether it’s $50,000 or $500,000 – can improve their financial position by being disciplined in their financial motives. After all, just because you “can” buy something doesn’t mean you have to.
4) Challenge Yourself to Do Better
One of the exciting aspects of frugality that most people never get is what a game it can be. Instead of paying full price for something you want, why not see if you can do better?
- Is it going on sale soon?
- Can I find a coupon code?
- Is it available at another retailer for a discount?
- Can I negotiate a better price?
- Could buying it used help me save some cash?
Imposing a friendly challenge upon yourself to get something at a lower price not only helps your budget but also can help you feel more like you really earned that purchase.
5) Send a Message to Corporate America
Since the COVID pandemic, inflation has been out of control. Big business has stopped at nothing to cash in on the economic disruption that was caused and turn it into an opportunity to pocket as much profit as they could for themselves. This has left many working-class families stretched beyond thin trying to keep up with rising prices, let alone basics like food and shelter.
Therefore, loud budgeting can be our opportunity to say, “Enough is enough”. We don’t have to give in to the pressures of consumerism or buying the latest trend because some brand or corporate sponsor says so. Our message can be that we’re in control of how we choose to spend our hard-earned money.
How You Can Practice Loud Budgeting
If you’re sold on the idea of loud budgeting but unsure of how to make it a part of your everyday life, then rest assured you’re only a few steps away from integrating it into your financial habits.
Decide What’s Most Important to You
The first thing to do is to figure out what you value. Set your goals for who you want to be and how money can help you accomplish them.
In terms of what you like to buy, one of my favorite quotes comes from financial guru Ramit Sethi when he says, “Spend extravagantly on the things you love and cut costs mercilessly on the things you don’t.” Essentially, he’s saying to prioritize purchases that will bring you joy and ignore everything else.
Make Your Position Known
This is where you put the “loud” in loud budgeting. When someone suggests you should buy something you don’t want or need, don’t be afraid to let them know why you won’t be doing that.
This of course should never be done in a mean or hurtful way. Again, you’re just reiterating the commitment you’ve already made to yourself and reinforcing why that position is important.
Try this out and you’ll quickly realize who your real friends are and who they aren’t. Anyone who truly has your best interests at heart won’t chastise you for staying within your budget. Instead, they’ll support and respect it because they recognize it as a form of accomplishment.
Practice What You Preach
It’s not enough to simply go around telling everyone what you are or aren’t going to spend your money on. You have also to do the things you say you’re going to. Otherwise, you’ll never come any closer to actually reaching your financial goals.
This can be done by regularly monitoring your budget. Get in the habit of reviewing your transactions and ensuring that your overall spending patterns align with the limits you’ve set for yourself.
Overall, the goal of any good budget is to have a plan for your money and then make sure you’re sticking to it. By expressing your goals to others, you’re already putting yourself in a position of accountability to others. Therefore, be the good financial steward you aspire to be.
Featured image credit: Pexels
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