Photo illustration: by The Cut; Photo: Getty Images
Good news if you've ever sat nervously at a group dinner, scouring the menu for the cheapest option (soup, it's always soup!) and praying that no one wants to split the bill. The quiet frugal lifestyle is over and “loud budgeting” has begun. The phrase, which means exactly what it says, was coined by TikToker Lucas Battle in December. “Loud budgeting is a new concept I’m introducing for 2024,” he announced in a video that currently has over 1.5 million views. “It's not that I don't have enough. It's that I don't want to spend money.”
The difference is that you own your cheapness. “Anyone who knows rich people knows that they hate spending money, which means they're getting chicer, more stylish, and more flexible,” says Battle. explained. Even if you budget out of necessity like everyone else (let's be real), it's now acceptable – Recommended! — Claim it as a lifestyle choice, the same way you talk about your weekend plans or your dog. It's mandatory, and it's not a restriction, but a healthy boundary. It's about sharing wine with friends in the park because it's fun, not because you can't afford a drink at the bar. (Of course, you may not be able to. But don't worry about that. You're having fun.)
The timing was executed perfectly. Just as “No Buy January” began and the world was recovering from the era of promiscuous spending, the internet was buzzing with budgeting. Jenny Park, who posts about personal finance as @mohaewithjennypark, said: “We all had this Yoro mentality of getting the feel of the day, getting money during COVID. ” he says. “We've been doing that for about a year and a half, and now reality is setting in. People are like, Wait, I need a sustainable way to make a living and also pay off my student loans. How can I manage this?”
Unlike traditional budgeting, which is traditionally associated with spreadsheets, anxious calculations, and quiet lectures from parents, the “out loud” version is out there and taking pride of place. I feel comfortable telling the world what I want to spend and what I want to spend it on. t. Also suitable for sharing on social media. Search #loudbudgeting on TikTok and you'll see thousands of people talking about their weekly spending, how to save money on groceries, and the 75 Hard Style Challenge (don't buy new clothes for 75 days and track your outfits). Masu. ) and other money hacks.
In many ways, this is a positive development. Research shows that people who are more social to talk about money are often better at managing their money. Natalie Fischer, 25, better known as @investwithnat on TikTok and Instagram, said her desire to be open about her money was a taboo for so many people, especially her parents' generation. He says that it grew out of the fact that he believes that. She says, “I get comments from some older people like, 'Why do you have to be so picky about the budget?' That's private.” “We need that,” she says. “We value transparency. That's how we hold each other accountable.”
The concept resonates. Natalie has been making videos about saving money for more than two years, but when she started changing the wording in her content, she said, “This is how I picky budget,'' and the number of viewers increased. She says the number of comments has increased. “I think it’s a great label to help rally people against overconsumption,” she says. “This is basically reinventing the concept of budgeting.” This may be a tough sell, especially to younger people, she added. “Our generation is always connected online, which makes our spending more impulsive. So we really need this.”
Fisher's own big-budget strategy included cleaning out her closet and creating a capsule wardrobe of neutrals that she regularly re-wears, even with her own content. “I used to have a lot of one-off outfits because they looked Instagram-worthy, but I'm cutting back on that, and I think a lot of other people are too,” she says. She noticed that many of her colleagues were doing the same thing or renting her clothes on Fashion Pass instead of buying them. She will have less pressure to wear new clothes in every photo and video. In fact, it's cooler if you don't.
Jenny Park points out that destigmatizing topics that many people find shameful or uncomfortable is powerful. “My hope is that people take this as an opportunity to have transparent conversations with their friends about money and stop trying to follow their friends' lifestyles,” she says. “For example, if you're planning to go to a bachelorette or bachelorette party, say your budget before you commit. Or if you're making social plans with friends, feel free to say, “I'm trying to eat out less. Let's say “Yes.” Can I just cook at home? ”
Talking openly about money is one way to stick to a budget.The other person is aware of who is speaking. to you. “When I first learned about personal finance, it was helpful to watch YouTubers who talk about it,” says Park. “I realized that you are what you consume. So I deliberately unfollowed influencers and creators who talked a lot about shopping, and I started to change the lifestyle that I was trying to normalize for myself. I started following the people who were sending it.”
Of course, none of these tips are new. It's just a way to inject some novelty into something that's hard to get excited about. Through that “loud” lens, budgeting becomes an act of self-actualization rather than self-deprivation. “Anytime you can reimagine personal finance in a way that is more freeing, rewarding, and fun, it creates an entry point for people who have been intimidated by personal finance or thought it was just pinching money.” says Park.
That said, there can be a dark side to budgeting as a trend on TikTok, Park says. Enthusiasts who are new to personal finance may start making decisions based on information they find on social media rather than proper, vetted advice. “There’s a lot of misinformation out there at best and predatory information at worst,” she says. Some people promote risky investments. Some vendors sell budget courses or products that don't offer much value. Both schemes prey on people who don't know any better.
The reality is, like any trend, big-budget labels will start to feel stale after a few months. By then, the New Year's energy savings will have worn off anyway, and people will go back to buying bottles of status water and other interesting things at that point. But ideally, they'll also be learning new savings habits that stick. But what is most likely to continue is the people. speaking What is working, what isn't, and what you would like to change about money? And that's a good thing overall.
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