Loud Budgeting: Understanding the Trend and Its Impact 

What is Loud Budgeting?  

Loud budgeting is a simple financial strategy that involves openly discussing your financial goals and limitations. It’s the opposite of spending money just because people expect you to. The idea is to calmly set boundaries when you don’t want to spend money on something, letting people know that you’re not going to do it. You don’t need to share every detail of your finances, simply putting your financial boundaries out there is enough.  

The trend is attributed to TikTok user Lukas Battle, whose short video explainer quickly went viral. Loud budgeting has gained a lot of traction since then, particularly with younger people who often reject the more traditional—and secretive—approach to money. 

Examples of Loud Budgeting in Action 

Loud budgeting can be used in most situations where there is the pressure to spend money. For example, if your friends invite you on a day trip that is out of your budget, you might say, “No thanks, the trip doesn’t fit with my budget this month.” Or maybe you’re out for dinner with work colleagues. When someone suggests costly pre-dinner cocktails, you might say “I’m going to stick with sparkling water for now—I’m watching my spending.” It's that simple!  

You don’t always need to say “no” to practice loud budgeting. Often, there are alternative options that may cost less (or even nothing at all). The point is to be open about what you want to do with your money and not be pressured to spend. There’s no need to explain your financial choices if you don’t want to—if you’re being open about not overspending, you’re doing it right. 

Strategies for Loud Budgeting 

Communication is the key to using loud budgeting successfully. It’s not about refusing every opportunity that comes along, but about stating your financial boundaries clearly. So, if you’re looking to try loud budgeting, here are a few tips to get you started. 

1. Share your financial POV: Honesty is the key to loud budgeting. Saying no or suggesting a cheaper alternative might feel daunting at first because of the stigma traditionally attached to talking about finances. But once you get going, sharing can be liberating. There’s no reason to be embarrassed about not wanting to overspend! 

2. Find allies and partners: Just as spending money together can be a fun way of bonding, so can not spending money together. As you get louder about your budgeting, you’ll probably find that people you know want to try it to. Or maybe they’re already on board! Discussing budgeting and finances is a terrific way to stick to your plan and achieve your goals, so don’t be shy.  

3. Maintain a realistic lifestyle: If you’re living on a tight budget but trying to live like a billionaire, things are going to be tough. Be realistic about the things that you can afford, whether groceries, clothes, or vacations, and appreciate that smaller pleasures are still pleasures! You’ll probably find that you don’t need to say “no” so often and can fit more (smaller) treats into your budget. 

4. Be diplomatic: Everyone has different financial goals and boundaries, so be careful not to impose your choices on others in an overbearing way. Set out your points clearly and calmly, without judging others. There’s no need to point the finger at other people if they want to spend their money. Be aware that some people may get defensive regardless of how diplomatic you are. There’s not much you can do about this, so just stick to your plan. 

5. Find ways to still have fun: Just because you’re reducing your spending, that doesn’t mean you can’t enjoy life. Make sure to keep up with your relationships—it can be easy to let them slide when you're on a tight budget, so actively look for opportunities to catch up with friends and family that don't cost a fortune. Taking a walk together or watching a film on TV costs pretty much nothing and can be just as fun as an expensive night out. 

Pros and Cons of Loud Budgeting 

Loud budgeting can be an effective way to keep on top of your finances, reduce the effects of peer pressure, and even find camaraderie with others. But it’s not without its potential drawbacks, including the risk of oversharing and social discomfort. Think carefully whether loud budgeting is the right tool to use in any given situation and always use it mindfully. 

Benefits of Loud Budgeting 

When used thoughtfully, loud budgeting can: 

• Foster open discussion of finances  

• Help avoid unnecessary or socially driven spending 

• Encourage thoughtful, deliberate spending 

• Reduce stigma associated with speaking about money 

Drawbacks of Loud Budgeting 

In some situations, loud budgeting may be inappropriate and could lead to: 

• Oversharing of personal financial details 

• Discomfort in some social or professional settings 

• Reduced opportunities for socializing 

• Other people feeling alienated or judged 

Explore More DIY Budgeting Methods 

If you decide to try loud budgeting, it’s a great idea to combine it with other financial management techniques to maximize the benefits. Remember that the most important thing with any budget is sticking to it. It takes dedication and commitment, but it’s worth it! 

Daily Budgeting 

Having a budget for day-to-day expenses helps you to live within your means and achieve your financial goals. There are plenty of different approaches to budgeting, so try different methods until you find one that fits with your personality and lifestyle.  

The 50/30/20 Method 

With the 50/30/20 budgeting technique (link), you use 50% of your after-tax income for essential expenses (like rent, groceries, and utilities). 30% for things that are good to have but not essential (things like eating out or going to concerts), and 20% to your financial goals (paying off debts, building up savings, making investments and so on).  

This method makes it easy to work toward your financial goals with every paycheck. It’s great for people who can draw clear lines between “needs” and “wants," and it can also be a helpful way to work out your financial priorities. It’s also easy to tweak the percentages if you like—if, say, you want to put 30% toward your goals and spend less on "wants." 

The Envelope Method 

The envelope method (link) involves creating an “envelope” for each of your expenses, such as rent, utilities, and entertainment, and allocating a set amount of your post-tax income every month to each envelope. The aim is to only use the money in the appropriate envelope for each expense. Although the idea was developed for cash, you can adapt it for digital money by using a spreadsheet or budgeting app. 

The envelope method can help to avoid overspending, and you can get as granular as you like with your envelopes. For example, you might have one envelope for groceries, but maybe you have two—one for essentials and one for splurges. If you choose the cash route, make sure to keep the envelopes in a secure place. 

Zero-based Budgeting 

With zero-based budgeting (link), you keep a careful record of your income and allocate every bit of it to some use—down to the last dollar. It’s not about spending everything, but rather having a plan for every bit of it. So, if you have a list of your monthly income, once you’ve allocated everything there should be zero left over—hence the name. 

This method is quite intensive as you need to track every dollar, every time. To get a better handle on your finances, consider learning how to budget  properly. It’s good for people who like to keep careful records and enjoy being meticulous. If that’s not you, one of the other methods is likely a better choice. 

Paying off Debt 

If your financial goals are centered around reducing the amount of debt you owe, there are strategies to help. These techniques can be used alongside any of the budgeting methods already discussed and combined with loud budgeting to help you stick to your plan. 

The Avalanche Method 

The avalanche method involves making a list of all your debts from those with the highest interest rates to those with the lowest rates, then paying off those with the highest rates first. Although it can take a while to show results if the debts at the top of the list take a while to pay off, this method is extremely effective if you have the discipline to stick to it. Plus, removing the debts with the highest interest rates first means you could pay less in interest overall. 

The Snowball Method 

With the snowball method, you list your debts from smallest to largest and pay off the smallest debts first before moving on to the largest. Clearing smaller debts quickly can give an emotional boost that could make it easier to keep going, but you may pay more interest overall than with the avalanche method. 

Time to Get Loud About Budgeting? 

Loud budgeting is an exciting new way to approach staying within your budget. By being open and honest about your budget and financial boundaries, it can be easier to resist social pressures to spend, improving your overall financial health and decision-making. 

The trend is just a small part of managing your finances. If you need a more comprehensive understanding of how to regain control of your money, check out our debt relief overview—here's everything you need to know.