Some People Are "Loud Budgeting" on Social Media. Should You?

A new personal finance trend is making its rounds on TikTok right now. Some social media users are openly sharing why they aren't spending money.

It's called "loud budgeting," and the main point is to be open and honest about your finances. Here's why some people are loud budgeting and why it can be useful.

What is loud budgeting?

Essentially, someone who is loud budgeting tells others why they're not spending money, what type of debt they have, and what their financial goals are. They're transparent about their finances.

Here are a few scenarios where you might use loud budgeting on social media or when talking with friends and family:

• Skipping a fancy dinner with friends and telling them you're paying off debt.
• Not going on a vacation with extended family because you're saving for a house down payment.
• Telling friends you're not going to a concert so you can pay off your car loan.

In short, a loud budgeter doesn't just skip expensive outings; they also share with friends and family why they're cutting out expenses.

Loud budgeting is a shift away from flaunting

Loud budgeting is a response to years of social media posts of people flaunting their purchases or expensive travel. Instead of projecting financial wealth on their social media accounts, a loud budgeter's goal is to be candid about their financial struggles and direct about their goals.

But loud budgeting is more than just being honest about money. A bigger goal within the trend is removing the embarrassment and discomfort associated with debt. Loud budgeting is going viral at a time when credit card interest rates are rising and the average American has credit card debt of $6,365, according to recent research by The Motley Fool Ascent.

Should you loud budget?

The short answer to whether you should budget loudly: It depends. If you find it helpful to share your financial situation with others and it helps keep you accountable and working toward your goals, then it might benefit you.

For example, if telling your friends you can't go on an expensive vacation because you're paying off your car loan will keep you motivated to do so, then it might be a good idea to participate in loud budgeting.

Your transparency may also help the people around you be more honest about their financial setbacks and goals. That can be a win-win for both you and them.

But it's important to remember that budgeting should be more than just a TikTok trend. It takes hard work to stay committed to your financial goals.

How to move past the first part of loud budgeting

The first step of loud budgeting is telling others why you're not spending money. But while discussing debt is difficult, it's not the hardest part of loud budgeting.

The most challenging part is the actual budgeting. Don't worry; you don't have to create spreadsheets to figure out where your money is going. But utilizing a few budgeting apps may be a good idea.

You may also want to talk to a financial planner. They can help you set goals and create a long-term strategy for meeting them. In fact, just think of talking to a financial planner as an extension of loud budgeting, because you'll have to be honest with them about your debt struggles and hopes for the future. It might not make for a popular TikTok video, but it will be an excellent first step in airing your dirty debt laundry to another person and outlining your personal financial goals.