Why is everyone talking about loud budgeting?

KEY TAKEAWAYS

✔ Loud budgeting is a trend that encourages being open about your financial goals and saying no to things that are not in your budget.

✔ An online budgeting app or budgeting template is a good place to learn how to manage your spending and save money.   

✔ If expenses are adding up and it’s a challenge to pay bills, a debt consolidation loan provides one monthly payment and makes it easier to budget your money.  

Today, inflation, shrinkflation, and rising interest rates have put the money squeeze on everyone. The idea of managing your money has never been more popular. So it’s no wonder the loud budgeting trend took off in social media channels.

What is loud budgeting?

The term loud budgeting is attributed to a TikTok trend writer and comedian Lukas Battles, early in 2024. Since Battles’ message went viral, a lot of people have taken it to heart. According to a recent study[i]:

• 1 in 5 Gen Zers are aware of the term loud budgeting.
• Overall, 6% of Gen Zers claim to be loud budgeters.
• Gen Z loud budgeters save an average of $629 per month.

The same study showed that 53% of Gen Zers unaware of loud budgeting are doing the things that loud budgeting promotes. So this trend may become the new normal.

Loud budgeting simply means saying no to things that cost money and are not within your budget. For example, a friend invites you to dinner and a movie. You want to go but you’ve also promised yourself that you will put extra money toward your credit card balance this month because you want to be debt-free in the next six months.

As a loud budgeter, you tell your friend “out loud” (hence the term) about your goal to pay off your credit card in full. Then, explain that you need to make your money goal your priority. After that, you can suggest an alternative that costs less, like hanging out and watching a movie at home. It may surprise you that many of your friends would also prefer to spend less money on things like entertainment and restaurants so they can achieve some of their goals faster.  

Is loud budgeting right for you?

If you’ve taken on more debt, you’re struggling to pay off a student loan, or you’re just finding it a struggle to make ends meet, then any kind of budgeting is likely to help. Online budgeting templates and budgeting apps are a great way to get started. 

A budget doesn’t have to be a complicated thing. It can be as simple as writing down what you hope to achieve in the next month or year, and how much money you need to make it happen. Once you have a budget, you have something to get loud about. You can say:

“I’m bringing my lunch to work four days a week because I’m saving for a training course and it’s really important because it will help me make more money.”

“I prefer to take the bus because I’d rather save my money for a new laptop than give it to a ride-share service.”

“I’m dropping a couple of movie channels in favour of putting the money toward a trip next year.”

You may find that most of your friends will respect your decision once they understand that you need to save for something important to you.

The goeasy Academy has lots of great articles and planners to get you started such as, 5 ways to start saving money in Canada.

Staying committed to your budget

It’s one thing to say no now and then to dinner out, or take a pass on a weekend getaway, but no one wants to say no all the time. If you’re serious about taking control of your money and getting closer to your goals, you’ll need to stay focused. Here are three obstacles budgeters face and tips for getting past them:

1. Wanting to be liked

Getting a “thumbs down” when you pass on an event never feels good. But don’t let others pressure you into spending money. Your best friends are the ones who support your choice to reach your financial goals. You may even inspire them to do the same.

2. Losing momentum

It’s not easy to stay committed to any kind of budgeting if you can’t see the results. So whatever you’re trying to achieve, devise a way to track your progress. Watch the money in your savings account or emergency fund increase, and take pride when your debts start going down.

3. Temptation

You can’t hide from the daily deluge of offers in your inbox. Even the best budgeters and savers get tempted to buy things they don’t need. When the urge to shop kicks in, remind yourself of how good you’re going to feel when you reach your goal. In the moment, ask yourself if it’s really worth the money. It’s probably not.

Consolidate, simplify, and shout about it

When bills and expenses are piling up in lots of places, it can be difficult to manage your budget no matter how loudly you do it. Rather than struggle to manage all the payments and not see progress,  consider a debt consolidation loan. It lets you consolidate all of your high-interest-rate credit cards or other expenses into one monthly payment, over a set period of time.  This way, you can loudly declare that you're on a mission to pay off your single, debt consolidation loan. 

If you’re ready to get on the path to a better financial tomorrow and let everyone know that you’re committed to becoming debt-free, connect with an easyfinancial representative at one of our 400 branches, or call 1-888-502-3279. We can help with debt consolidation or personal loans. Applying online will not affect your credit.  

Disclaimer: This content is intended for informational purposes only and does not constitute financial advice on any subject matter.

[i] Clarify Capital. Gen Z's Loud Budgeting Trend: Fad or Future? Viewed April 2024. Source.