What’s ‘Loud Budgeting’ and Is It Right for You?

Popularized by TikTok is a method of managing your money that has got people talking—loud budgeting.

The term, which was coined as a joke by TikTok comedian Lukas Battle, has spread like wildfire on the app. It's all about verbally stating your financial goals and expenses out loud to the world, in the hope that it will help you stay accountable.

Not every person will feel comfortable being so vocal about their finances or giving other people the ammunition to pass judgment on their spending habits, but some people swear by this technique. So, let's dive into what loud budgeting entails and if it's the right approach for you.

Loud budgeting explained

While everyone has financial constraints, not everyone feels comfortable voicing them. But avoiding the subject altogether can create overspending if you’re not careful. For instance, if a friend asks you to go out for a fancy dinner you can't afford, it's often easier to say 'yes' than explain why you have to decline.

That's where loud budgeting comes in. By openly expressing what you are and what you aren’t willing to spend your hard-earned cash on to the people around you, you can make better financial decisions. It’s both a financial hack for people who are financially struggling and a hack for anyone who wants to be smarter with their spending.

Loud budgeting is a liberation—and all it requires of you is a willingness to be open, honest and transparent about your financial life with your friends and family. When someone invites you to an expensive restaurant, loud budgeting will free you to express your true feelings and say, “You know what, I’d rather eat somewhere cheaper,” or “I’m trying not to waste too much money on eating out. Care to cook something at home?” 

At least, that's the goal of loud budgeting. In reality, initiating those financial conversations can be awkward and uncomfortable. When Battle joked about “loud budgeting” in his TikTok video, he said it had “the same feeling of sneaking candy into a movie theater.”

But who exactly thrives with loud budgeting, and who might find it more of a hindrance than a help?

Loud budgeting by personality type

Of the 16 personality types, the people most likely to use loud budgeting are those who don’t mind this sort of transparency. While everyone is different, it seems likely someone with an ISTP personality would rather like this trend. They might see loud budgeting as an opportunity to problem-solve out loud and may not feel embarrassed to say, “I don’t want to spend my money on this because I’d rather spend it on this.” 

In fact, the TP types in general (ISTP, INTP, ENTP) may feel drawn to this practical budgeting method, except for ESTPs, who may find it restricts their thrill-seeking and sociable nature. 

ESFJs and ESTJs may also see loud budgeting as an effective way to save money. These types prefer financial security and don’t like to spend in many categories that don’t help them meet their goals. These types also value accountability, viewing it as an essential component to any successful plan.

Which types will hate loud budgeting? While loud budgeting is a helpful financial hack, not all personality types would feel comfortable using it. INFPs, for example, might feel uncomfortable expressing a financial need or even talking about finances. Since INFPs like to make others happy, they may ignore their desires over everyone else’s, leading them to cave at extra, unexpected social expenses. 

INTJs might also find loud budgeting an ineffective (and even anxiety-provoking) method for them. These types are both rational and private and may not like the “loud” part of loud budgeting. Also, ISFJs may hate this idea since it requires them to speak up about their financial situation, which they consider a private matter.

But at the end of the day, we're all individuals. How we manage our money is a personal choice and what works for one person may not work for another. If you want to give loud budgeting a try, the following tips can help you get started.

Tips for starting loud budgeting

• Start where you’re comfortable. To begin, try out-loud budgeting with someone you’re extremely comfortable with—a best friend, partner or parent. This will help you break the ice and open your mind to being more transparent with others.
• Analyze your budget and your financial goals. Whether you’re saving for a house, trying to pay off student loans, or setting aside money for a vacation, remember that unexpected spending could get in the way of these goals and help delay them. An honest look at your budgeting will help you in the long run.
• Don’t feel pressured to explain your reasons why. You don’t need to go into detail about why you’d rather not spend a wad of cash on a pricey dinner or a concert ticket. Loud budgeting means you say, “I’d rather not,” and set a healthy boundary to protect your financial goals. Your business is your business.
• Think of alternative activities. You don’t want to feel like a wet blanket who always says “no,” so a great way to avoid this is to think of and offer alternative activities. When your friend suggests a pricey dinner spot, offer a cheaper place to eat. When someone asks you to join them at a zoo, concert, or other event with a high ticket cost, suggest an activity or event that’s cheaper (or even free, if you’d like).

The takeaway 

Loud budgeting is an effective way to view your finances and set healthy boundaries to avoid overspending in areas you’d prefer not to. However, not every personality type will feel comfortable turning down social outings or fun opportunities when they arise—or with being so open about their money habits!

You may discover you like the practicality of loud budgeting so much it becomes an easy and effective way to manage your money. Or you may prefer the peace that comes with keeping your finances more private. The most important thing is to find a budgeting scheme that works for you because everyone’s financial goals are unique, and that's nobody's business but your own.