By Adam McCann, WalletHub Financial Writer
What Is Loud Budgeting?
Loud budgeting is a personal finance trend that encourages people to be vocal about their budget and speak up when they can’t afford to spend more. It was popularized on TikTok, and it’s a way for people to avoid overspending and reduce peer pressure from friends.
Around 1 in 5 Americans exceed their monthly budgets, according to a recent WalletHub survey, and loud budgeting can be a good way for people to keep themselves on track and avoid the temptation to purchase luxuries they can’t afford.
Origin of Loud Budgeting
The term “loud budgeting” was popularized by TikToker Lukas Battle, as the opposite of “quiet luxury.” While the video was made in a joking manner, it’s become a viral trend, with people discussing the idea seriously.
In the TikTok, Battle says “It’s not, ‘I don’t have enough.’ It’s, ‘I don’t wanna spend.’” Then, he gives a humorous example of turning down hanging out with a friend because it’ll cost you too much in gas money just to hear them complain about their ex.
With loud budgeting, you’re reframing a situation where you turn down spending money. Instead of thinking negatively about your own finances, you feel good about sticking to your budget. You’re also honest with others about the reasons why you don’t want to spend money. When they know you simply don’t have room in your budget, they may be less likely to pressure you than if they think you simply don’t want to hang out or are tired, etc.
Other people have since expanded on the idea of loud budgeting, fleshing it out more as a concept. It’s now broadly about being vocal regarding how much money you can spend based on your personal budget, and being open about your finances in general. It’s also about setting boundaries with others and not letting them dictate your spending.
How Loud Budgeting Works
Loud budgeting may be easier for some people than others. It depends on how comfortable you are being open with your friends and family about money. Below, we’ve laid out all the basic steps for how to put this trend into action, from actually creating a budget to resisting pressure from others to overspend.
Make a budget
In order to actually practice loud budgeting, you’ll need to have a budget in the first place. That way, you’ll be able to know what items you plan to spend money on during the month, and which ones you’ll need to turn down.
Making a proper budget involves gathering information about your income and expenses, setting goals for what you want your budget to accomplish, prioritizing your expenses and assigning a certain dollar amount to spend on each of them, and then tracking your spending progress as the month goes by.
You can check out WalletHub’s guide on how to make a budget for an in-depth explanation.
Keep your budget in mind at all times
If something is in your budget for the month, then you’re free to spend money on it. If something is not in your budget, then you should avoid spending money on it. Of course, you might not be able to predict every single expense you might have in a month, but you should have a certain amount that you’re willing to spend in general categories, like eating out or buying things for your hobby. You might also have a certain amount of money set aside that can go toward any miscellaneous expenses.
Refuse expenses that don’t fit into your budget
If someone invites you somewhere or tries to get you to spend money on something and it doesn’t fit into your budget, simply say no. Proponents of loud budgeting also encourage you to share why you’re saying no. That way people understand why you’re refusing and you get a self-confidence boost from being responsible.
Remain vocal about your budget
Talk openly with your friends and family about how much money you’re willing to spend on particular items and events. Not only will this help keep your budget plans fresh in your mind and make it easier to hold yourself accountable, but it will also make other people more familiar with your boundaries. You don’t need to give out any more information than you’re comfortable giving, though.
Avoid peer pressure
People who care about you will typically understand when you turn something down because it’s not good for your finances. Some people may be more pushy, though, and try to get you to exceed your budget in the name of having fun. It’s important to stick to your financial goals and continue to say no, even if you’re pressured.
Loud Budgeting Tips
- Talk about money: In addition to being open about your own budget and refusing expenses that don’t fit into it, loud budgeting also involves having discussions about money within your friend group. Normalizing financial conversations can make it less awkward when you object to something for budgeting reasons.
- Budget as a group: Within your family and friend groups, collectively discuss budgets for outings and activities. That way, you’re less likely to have people decline to participate, since there’s time to prepare beforehand and everyone has ownership of the plan.
- Hold each other accountable: Track your expenses while you’re out and point out if your group is in danger of going over budget. Everyone is entitled to make their own choices, of course, but the group should never force individual members to partake in something that will make them spend too much.
- Learn more about personal finance: The more you learn about money, the more you’ll be able to discuss it thoughtfully. WalletHub has plenty of articles on a wide variety of financial topics to get you started. You can also test your knowledge to see what your own WalletLiteracy score is!
- Encourage others: Celebrate meeting financial milestones and encourage your friends and family to keep working toward their goals, whether they include paying off debt, saving for a big purchase, building an emergency fund, investing or similar objectives.
Loud Budgeting Examples
Below are a few examples of situations where you might engage in loud budgeting, and how you might want to respond in each scenario. Use these as guidelines when you’re confronted with similar situations in your personal life.
Your friend invites you to go out to dinner at a place that would put you way over budget for eating out during the month.
Tell your friend that eating at that restaurant doesn’t fit into your budget, and politely decline the invitation. You may suggest an alternate place to eat that does fit what you’re willing to spend. Or, if you’re actually interested in going, tell them you’ll set a goal to save up enough money to go with them in the future.
You’re out with a group of people at dinner, and someone suddenly suggests going out to a movie afterward.
If going to the movie would put your budget in danger, decline to go. However, even if you’re willing to spend the money, point out that the original plan was just to go to dinner, and make sure that everyone is financially comfortable with adding on an extra activity.
Your family decides to go on vacation together, and you’re both able and willing to go.
Long before the trip, sit down and have a discussion about everyone’s budgets and expectations for the trip. Plan activities accordingly so that everyone is comfortable with the itinerary and won’t put their wallets in danger.
You come across a great article about personal finance that helps you understand a topic.
Share it with your friends and family! If it helped you, chances are it will help them too.
You see someone pressuring a friend who declined a group activity due to budget reasons.
Tell the peer-pressuring person to stop, and make it clear that you understand and respect the reason why the other person refused. Try to find an alternate way to accommodate them with a different activity, or at least let them know that you won’t think any less of them for not joining this one.
Your friend tells you they don’t have a budget.
Sit down with them and help them create one, if that’s something they’re comfortable with. Alternatively, be open with them about your own budgeting process and give them tips on how to make one and why having a budget is important.
These are just a few of the many situations where loud budgeting may be useful. So in the future when you’re with your family and friends, keep this hot new trend in mind, as it just might help your wallet and your relationships with others.
Ask The Experts
WalletHub asked a panel of experts to share their thoughts on loud budgeting. You can click “Read More” under each expert’s name and title to see their answers to the following questions.
- Do you think loud budgeting is an effective strategy?
- What are some drawbacks to loud budgeting?
- What are some tips that can help someone balance loud budgeting with their social life?
- Do you think loud budgeting is just a fad?
Anup Nair
M.B.A., Assistant Teaching Professor, Marketing, Austin E. Cofrin School of Business – University of Wisconsin-Green Bay
Is loud budgeting an effective strategy?
I believe loud budgeting can be an effective strategy, particularly for younger generations. It reframes a traditionally private topic—personal finance—into a public, and even aspirational, conversation. By openly declaring financial goals, it creates a sense of community and accountability, like how fitness influencers document their workout journeys. This transparency helps individuals stay on track with their goals, as their friends and followers can offer support and positive reinforcement. For example, a young person saving for a down payment on a house can proudly share that they are skipping expensive dinners, which normalizes their behavior and inspires others – possibly replacing negative emotions like shame, guilt, with the pride of being financially aware.
What are some drawbacks to loud budgeting?
While effective, loud budgeting is not without its challenges. The primary drawback is that it may lead to social friction or comparison. Not everyone has the same financial situation, and being overly vocal can sometimes create discomfort or the perception that you are judging others’ spending habits. Additionally, it can make an individual feel more pressure to justify every financial decision. For instance, if you loudly announce you are saving for a trip and then your friends see you buying a new outfit, it could open you up to criticism and questions about your commitment to your goals. So, balance is key. You may want to have certain public financial goals, and some you may want to keep private.
What are some tips that can help someone balance loud budgeting with their social life?
It is all about proactive communication and creativity. Instead of simply saying “no,” offer a budget-friendly alternative. This shows that you still want to socialize while prioritizing your financial goals. For example, instead of declining a friend’s invitation to a pricey restaurant, you can say, “I’m on a strict budget this month, but I’d love to host a potluck game night at my place instead!” This shifts the focus from what you cannot do to what you can do, strengthening your relationships in the process.
Do you think loud budgeting is just a fad?
While the name itself may be a passing trend, the underlying principles—financial transparency and intentional spending—have some possible advantages for certain audience. This movement reflects a deeper cultural shift where individuals are becoming more comfortable discussing money, empowering themselves to make smarter financial choices without shame. Ultimately, it is not the name that matters, but the powerful and lasting change in behavior it encourages.
Source: Loud Budgeting