Viral Financial Hack

Loud Budgeting: TikTok’s Latest Viral Financial Hack

Normally, making and following a budget is a private affair. A new viral TikTok trend aims to change that. 

Loud budgeting offers a boisterous alternative to quiet financial planning, and it’s taking off. The hashtag has more than 10 million views and counting. 

What is Loud Budgeting?

Loud budgeting began as a response to the “quiet luxury” trend, in which individuals showcased their wealth through understated, expensive purchases. 

Loud budgeting flips this script. Rather than quietly indulging in luxury, loud budgeting encourages you to share your financial limits to help you stick with your spending plan. 

This shift in mindset promotes financial awareness and empowers individuals to take control of their spending habits. It’s also a social thing. After all, who isn’t feeling the crunch with inflation and wage stagnation? Most of the people you tell will commiserate with their own struggles. 

2 Examples of Loud Budgeting

Loud budgeting can manifest in a lot of different conversations. Here are two of them:

1. Daily Limits 

Let’s say a friend asks you out for dinner with the promise to visit an arcade bar after your meal. Normally, cash-strapped people might lie to get out of this outing in fear of letting their friends know they’re broke. 

Following loud budgeting, you would admit you can’t afford the $30 meal or the $20 you might drop at the arcade. Maybe you have to save this money to pay your water bill or personal loan statement. You tell them exactly how much money you have to live on each day, suggesting a free night of streaming reality TV shows at home instead.   

2. Credit Realities 

Suppose your friends suggest a weekend getaway to a beautiful all-inclusive resort. You technically have room on your credit card to reserve your spot, but you aren’t too sure about how quickly you can pay off this big expense. 

Carrying over a balance for a long time can impact your credit score, lowering it more the bigger your balance is and the longer you have it. You don’t want to hurt your score, as it’s one of the most critical qualifications for your personal loans

So, rather than lying about how the timing isn’t right, you admit openly that you have plans to borrow a personal loan and don’t want to endanger your score.

Simple Budgeting Tips to Get You Started

For those intrigued by the concept of loud budgeting, here are some simple tips to get started:

  1. Prioritize Spending: Loud budgeting isn’t about total restriction but making intentional choices with your money. You need to know your priorities to ensure essential expenses get your cash first. 
  2. Find Budgeting Allies: Connect with friends who follow #loudbudgeting. Share tips and challenges to keep each other accountable.
  3. Look for Deals: Search for discounts, join buy nothing groups, and explore ways to save money on daily expenses. Small changes can add up over time.
  4. Educate Yourself: Take the opportunity to learn more about personal finance. Understanding the basics of budgeting, saving, and investing can empower you to make informed financial decisions.

In a world where discussions about money can be taboo, loud budgeting offers a refreshing and light-hearted approach to finances. So, get loud about your financial limits. Honesty is the best policy.

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