Ranked: 3 Habits for Successful 'Loud Budgeting'

Sometimes, the personal finance advice on TikTok is…actually pretty good? A new viral trend on TikTok, "loud budgeting," has become a real-life phenomenon among Gen Zers who want to regain control of their money. 

A February 2024 study from Clarify Capital found that, although only 6% of Gen Zers are deliberately using loud budgeting, 20% are aware of the concept. And among Gen Z people who are not familiar with loud budgeting, 53% are using some top loud budgeting habits. 

It seems that loud budgeting has struck a chord with Gen Z. Whether you consider yourself a loud budgeter or not, this Gen Z personal finance trend from TikTok can offer some helpful money management tips for anyone at any stage of life. 

Let's look at a few of the most commonly used habits of people who practice successful loud budgeting.

1. Keep an eye on your personal finances 

The survey of Gen Z from Clarify Capital found that the No. 1 financial habit most associated with loud budgeting was "regularly reviewing and adjusting finances" (mentioned by 51% of respondents). Loud budgeters monitor their bank accounts and make changes as needed. 

With loud budgeting, you don't have to be afraid to check your bank account balance or get a free annual credit report. And be sure to speak up if you see mistaken information or fraudulent activity that's dragging down your credit score. 

How to use this loud budgeting habit: Consider signing up for a free credit monitoring service, like Credit Karma, Credit Sesame, or CreditWise from Capital One. These services can help you keep an eye on any changes in your credit report, and get ideas for how to improve your credit score.   

2. Make intentional choices about your money 

The second most popular financial habit of loud budgeting, according to the Clarify Capital survey, was "making intentional choices for financial well-being and goal prioritization" (47% of respondents). In this era of high inflation and doom spending, some people feel helpless about money -- like their money just spends itself, whether they want to or not. 

Loud budgeting is a way to fight back against financial fatalism. Loud budgeters believe in clearly stating their goals and boundaries about when, and how much, to spend. They want to be able to say, "No, I'm not buying that -- even if I have the money." 

How to use this loud budgeting habit: Download a budgeting app. The best budgeting apps can help you track your spending automatically, categorize your expenses, and show you exactly where your money is going. 

By using a budgeting app, you can quickly find ways to reduce "unconscious spending" or cancel subscriptions that you don't use. Budgeting isn't about depriving yourself of joy. It's about setting intentions for what you want to accomplish with your money and making better-informed choices every day to support the highest purposes of your personal finances. 

3. Set financial goals 

The third most popular loud budgeting habit from Clarify Capital's survey was "setting and prioritizing financial goals" (46% of respondents). Not everyone is a natural goal-setter, but it can be a useful way to get a clear picture of how you want your personal finances to change. 

Think big about your finances, and ask yourself: 

• What do you most want to accomplish with your money? 
• What are some ways that spending money has recently made you happier, and which products or experiences haven't been worth it? 
• Do you want to get out of credit card debt? 
• Do you want to pay down other debts like personal loans or an auto loan? 
• Do you want to take a big vacation, buy a car, or boost your emergency savings fund? 
• Would you like to start a side hustle to earn more money, or go for a pay raise at work?
• Do you want to save for a down payment on a house? 
• Do you want to increase your retirement savings? 
• Do you want to give more money to charity? 

There are no wrong answers here, but setting goals can help you focus on the larger mission behind your money -- and get better at saving. 

How to use this loud budgeting habit: If you want to get out of debt faster, get a debt payoff app. The best debt payoff apps can help you make a debt payoff plan, automate your debt payments, and analyze your monthly spending to find extra cash that you can put toward paying off debt. 

Another option is to open a bank account that has built-in savings tools to help you save for specific goals. For example, Ally offers "savings buckets" and "spending buckets" so you can set money aside in multiple "digital envelopes" within your Ally savings account or checking account. SoFi offers Vaults where you can save for up to 20 different short- and medium-term goals. 

Bottom line 

Loud budgeting is not just the topic of a funny video on TikTok; it's a useful approach to improving your personal finances. With loud budgeting, you can be intentional about your spending, gain confidence to understand your monthly budget and credit score, and set powerful goals to propel you to a new level of financial success.