Exploring the Loud Budgeting Trend

In a time when our social feeds are dominated by carefully curated images of everyone’s latest luxurious vacations or home remodels, a new trend has emerged: loud budgeting.

What exactly is loud budgeting, and does it work? Let’s dive into the details.

What Is Loud Budgeting?

This relatively new budgeting strategy was first mentioned on TikTok. Unlike some of the more traditional budgeting strategies, which tend to be private and discreet, loud budgeting takes a much more public approach. People are encouraged to open up about their challenges with managing money, goals and spending decisions with those around them. Whether the goal is debt repayment, saving for a car or house down payment or just being conscientious of your spending habits, loud budgeting gets conversations started, unapologetically.

Does Loud Budgeting Work?

Since it’s less about sticking to a rigid budget and more about a mindset shift, loud budgeting can be very effective. And, because of its focus on transparency, a study from Clarify Capital in February 2024 found that this approach can help reduce financial stress, increase financial empowerment and improve mental health. That’s a win-win-win!

Now for the digits: The study also found that Gen Zers who practice loud budgeting save an average of $629 per month. Some of their most common tactics include regularly reviewing and adjusting their finances, as well as making intentional choices for financial well-being and goal prioritization.

Whether you consider yourself a loud budgeter or not, this trend serves as an opportunity to assess your financial situation and focus more on open and value-driven financial conversations.

Four Steps to Implement Loud Budgeting

Practicing loud budgeting starts by asking yourself what your budget must include, like groceries, car payments and rent. Then take stock of the things, like daily lattes and designer handbags, that may not fit in your budget right now. Make sure you get a good understanding of the purchases you’re willing to not just forgo, but also be outspoken about.

Here are four easy steps to get started:

1. Make a Budget

Think of your budget as your baseline. Then, select a budgeting method that fits your lifestyle and goals. Four popular methods include the 50/30/20 approach, zero-based budget, cash stuffing and pay yourself first. Explore your options and experiment.

2. Set Clear Goals

“Goals” can sound intimidating, but it’s simply defining your specific financial objectives. Articulate your goals and make sure they’re specific and measurable. For additional support, you can check out this article on 10 steps to achieve any goal.

3. Trade Off Wisely

It can be tempting to default to overspending activities and habits. But remember that your friends and family members are there to help. Spending time with them doesn’t require going outside your means. It’s okay to skip the expensive dinner and enjoy a picnic in the park instead — be vocal and proud of these kinds of choices.

4. Adapt as Circumstances Change

As life evolves, so should your budget. Take the time to adjust it when circumstances shift — whether due to a new job, side hustle income or unexpected expenses.

Loud budgeting is all about changing the way we talk about money, both with friends and family and online. You create clear, healthy financial boundaries based on the individual goals you put out there, not denial or guilt. It opens the door to having more ownership over your financial future by openly sharing your struggles and your successes.

Loud budgeting is also a great opportunity to begin allocating for life insurance. Instead of spending on a daily coffee, consider putting those funds toward a life insurance policy — a long-term investment in your family’s financial security.

At Gerber Life, we can help you get the conversation started. Call us today at 1-866-503-4481 to speak with one of our dedicated representatives, or you can get a free quote online.