Loud budgeting, the latest TikTok trend is taking the internet by storm! Loud budgeting is about avoiding impulsive spending and taking charge of your finances. Gen Zs on TikTok are now embracing this trend by openly discussing money-saving tactics and being deliberate about where their pounds go.
Loud budgeting lies in promoting financial transparency and challenging the traditional fear of missing out. It encourages people to save money consciously, shifting the focus from having to choose to not spend unnecessarily.
This concept went viral after TikToker Lukas Battle talked about his decision not to spend, how to navigate financial limitations, and how to live within your means. His video now has over £1.5 million views and the hashtag #loudspending has more than 100 million views on TikTok.
Battle states “It’s not I don’t have enough, it’s I don’t want to spend.”
“Loud budgeting is the same feeling as sneaking candy into a movie theatre. It’s about what I don’t want to spend and the everyday person. Put that dollar in your pocket. Choose a stock that is going to rocket.”
Battle made a really good point in a TikTok adding: “If you know any rich people, you know they hate spending.” So why should we when we don’t have the funds?!
So, what is loud budgeting?
According to CNBC, loud budgeting is a money-saving technique that involves declining social opportunities. Research suggests that 42% of Gen Z expect to cut back on luxuries and non-essential products as a result of rising prices. And almost a quarter of 18-24-year-olds believe they will never retire.
With over 1.3 million views on TikTok, Jenny Park shares three practical ways on how to apply loud budgeting.
1. Stop being ‘delulu’ and live within your means
Parker encourages us to analyse how much we bring home every month and how much we owe every single month, allocating 50% to essentials, 30% to lifestyle and 20% to saving and debt.
2. Put your future self first and start saving
Start investing in your retirement, build an emergency fund, and save up for and pay off your debt.
3. Rewire your brain and stop comparing yourself to others
Even though most of us try not to, we’re guilty of comparing ourselves to others. Stop comparing yourself to others, avoid living beyond your means, and focus on financial well-being.
If you want to apply loud budgeting into your daily lives, check out our blog post on 3 Budgeting Strategies to Save Money. Additionally, Money UK also provides seven resolutions to kickstart your journey to saving money this year.
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Sources
https://store.mintel.com/report/uk-lifestyles-of-generation-z-market-reporthttps://www.foxbusiness.com/personal-finance/gen-z-worried-theyll-never-retire
Blog Cover Photo: master1305/istockphoto.com
