What is loud budgeting and why is it trending on TikTok?

There’s a new trend that’s becoming popular on TikTok, and it could potentially help people save money. It’s called “loud budgeting,” a term coined by Lukas Battle. This idea is being contrasted with the trend of “quiet luxury,” which represents those who have an elegant but seemingly effortless lifestyle. Battle may have been looking for a laugh, but his idea has caught on, and now many other users are sharing their loud budgeting tips for 2024.

One user named Jenny Park, who provides financial advice to her followers, laid out three critical rules for budgeting. The first is to “stay within your means.”

The 50-30-20 rule

To comply with this rule, you should not spontaneously plan trips or buy items (cheap or expensive) that you do not have a use for if you are trying to stay on budget. Park promotes the 50-30-20 rule, which recommends spending 50 percent of their income on essentials, 30 percent on lifestyle, and 20 percent on saving and debt.

Pay it forward

The second tip is about investing your money in your future self. This can involve paying off any debts you may have, increasing your retirement savings, or putting some money aside in savings that can act as a safety net and be used in case of any unexpected expenses. “You are paying your future self, and your future self will thank you,” noted Park.

Mind your own business

The third and final tip in Park’s video centers on not comparing oneself to others. Some people in your life will have more than you have. That is their business, and in reality, you never know if those people are living within their means. Just because people have the latest cellphones or handbags does not mean that they are in a financially healthy position; they could be underwater in credit card debt or are putting away a smaller sliver of their income towards their retirement.