Expert: ‘Loud Budgeting’ Is Mentally and Financially Healthy, Plus Good Etiquette

In recent TikTok trends, a new viral phenomenon known as “loud budgeting” has emerged, offering a stark contrast to the concept of “quiet luxury.” The essence of loud budgeting lies in transparently and explicitly communicating one’s financial boundaries and priorities. TikToker Lukas Battle, credited with coining the term, emphasizes the humor behind it, aiming to destigmatize financial discussions. While financial advisors applaud the prudence of avoiding overspending, etiquette expert Diane Gottsman notes that, done correctly, loud budgeting fosters open communication.

Behavioral finance expert Brian Portnoy supports this trend, recognizing it as a step towards emotional literacy in financial discussions. Loud budgeting, he suggests, may herald a generational shift where discussing money becomes more normalized and less intimidating. This emotionally intelligent approach aligns money with the pursuit of joy and fulfillment, emphasizing self-awareness in financial planning. 

Financial Transparency:

In a notable example, Battle showcased that being a loud budgeter doesn’t just mean declining a dinner invitation but explicitly stating, “Sorry, can’t go out to dinner, I’ve got $7 a day to live on.” The intention is to foster financial transparency without the burden of embarrassment. Battle highlighted that being truthful and realistic about financial matters should be perceived as both stylish and cool.

From a financial perspective, loud budgeting aligns with the advice of financial advisors who consistently emphasize the importance of avoiding overspending and adhering to a financial plan. However, the social aspect of this trend also draws attention, and experts suggest that loud budgeting may offer insights into emotional literacy related to money, a skill often lacking in many individuals.

Brian Portnoy, a behavioral finance expert and founder of Shaping Wealth, views loud budgeting as a positive and emotionally intelligent approach. Money management, according to Portnoy, requires not only financial literacy but also emotional literacy, especially considering the emotional nature of financial decisions. He notes that loud budgeters who openly communicate their financial intentions exhibit a certain emotional intelligence.

Form of Open Communication?

Diane Gottsman, an etiquette expert and founder of the Protocol School of Texas, sees loud budgeting as a form of open communication rather than a disruptive force in social circles. According to her, this trend is essentially another way of encouraging transparency in financial matters. 

Portnoy emphasizes the importance of emotional intelligence in financial planning, highlighting that money should be seen as a tool to support a lifestyle that brings joy and fulfillment. This approach starts with self-awareness, where individuals identify what truly matters to them. By doing so, the goal shifts from simply making as much money as possible to making enough to maximize the time spent on activities that bring happiness.