Loud Budgeting is in, Quiet Luxury is out

Have you heard about the TikTok trend people are calling loud budgeting? It is kinda like the opposite of quiet luxury, and as a personal finance enthusiast, is a trend I can absolutely stand behind!

What is Quiet Luxury?

To understand why loud budgeting is so powerful, let’s talk about its inverse first — quiet luxury. Quiet luxury is essentially embodying wealth and affluence, but not in an “in-your-face” type of way.

So you wouldn’t be wearing clothing with obvious brand labels — for example, no Gucci belt with a big logo and no Louis Vuitton bag with the LV’s all over it.

Instead, you’re wearing things like a plain black t-shirt that costs $800 and typically only the super wealthy will be able to look at it know you’re “one of them.”

In my head, I think WHY?! That money could be used so much more powerfully, but hey — to each her own.

And to be clear, I am not saying don’t buy nice things. You work hard for your money and can spend it however you want, but I do have trouble wrapping my head around that trend. If you are on the same wavelength as me on that one, you may also love its opposite: loud budgeting.

What is Loud Budgeting?

Instead of spending gobs of money on everyday things to impress an elite group of people, loud budgeting is all about putting your intentionality and your goals out there. It is saying you prioritize money management and financial independence over overconsumption or the need to keep up with the Joneses (or Kardashians). 

I love this trend so much because it perfectly aligns with what I am constantly encouraging people to do with friends and family members when it comes to money: being intentional with how you want to spend your money and to stop getting sucked into things you don't actually want to do. A big bonus is that it allows you to put your goals out into the universe and make them feel more real!

Money has been a taboo subject for a long time, but it doesn't have to be! You can say:

I am skipping out on drinks Friday night because… 

👛 I’m saving for my trip to Mexico or 

👛 I'm focusing on paying off my credit card before the promo period ends or

👛 I'm trying to max out my Roth IRA this year

It can be isolating when you feel like the only person who’s living on a budget or has a totally different income than your friends, but honestly, I don’t know any true friend who’d say “I can’t believe you’d rather go to Mexico (or pay off your debt or invest) than get drunk with me.” 

And if you have a friend who would say that…well, maybe you want to reevaluate if that relationship is the best one for you mentally and financially🫣

Instead, I think you will find that when putting this into practice, those around you will feel thrilled that they have someone else with whom they can discuss these types of things. You may even get a “You know what, I need to save money too. Want to come over to my house and we can just have a glass of wine here? That way we still get to hang out!”

In the world of loud budgeting, we’re all able to share our goals for our money, have more transparency about budgeting and cheer each other on! Because guess what? When you start openly talking about your budget, you'll end up discovering that a lot of your friends probably feel very similar to you. 

Here’s What’s Cool About Loud Budgeting

🎉 It encourages thinking critically about how we are choosing to spend our money. We work too hard to not spend our money on things we really want just because we feel pressured to spend it in ways that’ll make us look a certain way to other people — or take the awkwardness out of having to say “no.” 

🎉 Sharing your goals and how you plan to save and spend your money can help you be more accountable. We tend to do better when we know people are watching us, and we have an accountability buddy to help set us straight if the wheels start falling off.

🎉 Loud budgeting helps us shift our mindset from “Oh, I don’t have enough” to “I get to choose how I spend my money.” When we’re all declining invites and purchases and being honest about what we plan to spend our money on instead, it erases that feeling of shame that comes with feeling like you can’t have what everyone else has.

Now, as I've alluded to, this trend isn't about not spending any of your money. You don’t have to save every penny. You should be enjoying your money; otherwise, what would be the point of working 40+ hours a week? A healthy balance is important.

Wrapping Up

Try using the new loud budgeting trend as an opportunity to sit down with your budget and make sure your spending and savings habits are aligned with your goals. 

You can even write those goals out on a Post-It note and put it where you’ll see it each day or keep them in the notes app on your phone so that the next time you want to #treatyoself and haven’t budgeted for it, you can remind yourself of what you really want. It'll empower you to speak up when the peer pressure of doing things you don't want to do hits.

If you have good friends, they’ll support your goals which is just another motivator to help get it done!

Ready to hop on the trend? Grab my free budget tracker template and start today!