A new trend in social media money is on the rise. It's all about budgeting out loud. And this is one financial movement that is likely to continue.
A reaction to the quiet luxury trends of 2023, budgeting out loud encourages you to talk openly with friends and family about your money goals while rejecting social pressures to spend. This strategy also helps you make money decisions that align with your values.
And personal finance experts love it, too.
“It's not 'I don't have enough money,' it's 'I don't want to spend money,'” says Internet personality Lucas Battle. “It’s about everyday people.”
Alaina Fingal, owner of The Organized Money and member of CNET's expert review panel, agrees. “Being authentic and having boundaries with how you spend your money, and being able to communicate that message to the world around you, will lead to you saving more money and paying off more debt,” she says. said.
With inflation still above the Fed's target and rising interest rates making financing difficult, budgeting loudly could be prudent monetary policy. Here's how to ride the trend.
What is loud budgeting?
Budgeting out loud is a financial strategy that puts your money goals front and center for your friends and family to see. It means clearly vocalizing why you choose not to spend money, even if you have it. This level of accountability allows you to stick to your budget without feeling guilty, experiencing FOMO, or fearing missing out.
“This represents a move towards transparency and community in financial management,” said Seedling Coach CEO Shauna Martin. And, she says, it's critical to demystifying budgeting, debt repayment, and saving.
Not only will you hold yourself accountable by voicing your financial plans, but you'll also let others know about your financial goals and encourage them to support you. People who share your money goals may have tips to help you reach them faster. Additionally, if your friends and family have a clear understanding of your financial priorities, they may plan a budget-friendly outing to ensure you are included. You can also encourage them to set similar financial goals.
Budgeting at scale on TikTok
Budgeting out loud is all the rage on social media. Influencers are in tune with his 2024 trends and offer scripts for different scenarios to help you stay on track. Some, like Jenny Park's latest TikTok, suggest goals like opening a high-yield savings account, paying off debt, or maximizing your retirement savings.
And people are starting to feel the holiday season strain their wallets as credit card and buy-now-pay-later payments come due this month. As a result, we're working on improving our relationship with money by implementing money challenges on social media this month, such as No-Spend January, where we only buy the essentials.
Martin says social media not only allows people to talk openly about money, but encourages it. “This openness is key to noisy budgeting, removing the stigma and mystery traditionally associated with financial discussions.”
From influencers recommending products to in-app ads, what we consume on social media also has a strong impact on our spending. But users can also be influenced by their community and culture, Fingal said. Personal finance coach and CNET expert reviewer Bernadette Joy says big budgeting is an approach that helps many people struggling with high prices, student loan payments, and high credit card interest rates.
Joy has also noticed a shift in the type of personal finance content people prefer. She says fewer people are looking for personal finance content that glorifies someone's income. Instead, people are looking for content that provides concrete steps to address financial goals and stress, such as tips to help pay off student loans.
While anyone can jump on the social media trend of budgeting out loud, Fingal believes millennials and Gen Z are more likely to follow this trend. Because these two generations use mobile phones for communication, news updates, and entertainment.
Martin agrees. “This trend reflects a major generational shift in personal finance, especially younger generations who are more active on social media,” she said.
Keeping up with lifestyle inflation and social media trends can be costly. Today, consider the infamous Stanley Cup. It's easy to be influenced and buy anything. But this also applies to home decor, furniture, and luxury vacations. Fingal says these impulse purchases can trigger feelings of guilt and other negative emotions, which can lead to unhealthy ways of thinking about money.
“There was so much guilt when it came to budgeting and other money topics,” Fingal said. “Some people feel shame for not having as much money as everyone else around them, while others feel extreme guilt for having more money than everyone around them.”
Joy agrees. “It's easy to copy what someone else is doing because it's trendy without realizing that it doesn't actually apply to your personal situation,” she says.
This new social media personal finance trend normalizes sticking to budgets and financial goals without feeling guilty, which may be helpful for those who struggle to keep up with the lifestyles of the influencers they see online. I don't know.
“Budgeting out loud can help you focus on what really matters, repair the emotional roller coaster that surrounds budgeting, and help you have healthy conversations about money with family and friends,” says Fingal. he said.
How to put loud budgeting into practice
If an experience is important to you, a larger budget shouldn't prevent you from spending on it. But it can help you focus on where your money goes and eliminate expenses you want to minimize.
For example, if you're planning a night out with friends, you might decide not to drink to reduce your bill, leaving you with more money to work toward your financial goals. Make sure your goals and expectations are realistic and sustainable. And share it with your friends so they can support you.
It also doesn't mean you have to completely give up vacation to reach your money goals. Shannatravels' Destination Camo TikTok offers “Destination Camo” to help you set a big budget.
“You can do and see the same things elsewhere for half the cost,” she said. “There are ridiculous vacations out there that give you the same experience on a budget.”
The downside to sharing your money goals online and with family and friends is that not everyone will agree with you. This can make sticking to your plan even more difficult.
“Sharing can be discouraged if others don't agree or empathize with it,” Joy says. “In a world where many people are driven by favoritism and approval from their peers, it can be discouraging when your spending doesn't match those around you.” But that doesn't mean you should quit.
Instead, make sure you're doing what makes you happy. To do this, you need to align your spending with your values and not let social media force you to spend. It might also mean setting a budget or goals, but instead of setting them out loud, Joy says, set them quietly. This will help you stay focused on your goals without getting discouraged. Or you can build a small community of people you trust.
“The strategy is to find someone you trust to share your financial journey, providing a combination of support, accountability, and motivation,” says Martin.
If you have a community of people who want to see you win and encourage you, budgeting out loud can be a great way to instill confidence in your personal financial decisions, says Joy. Told.
