Why ‘loud budgeting’ is good for you

Recently, a new money trend has gone viral on TikTok and Instagram. ‘Loud budgeting’ is all about being transparent and explicit about what you are and aren’t willing to spend your money on - with yourself and loved ones.  

It was first coined by Lukas Battle, a New York-based TikTok creator who compared ‘loud budgeting’ to sneaking sweets into a cinema.  

“You feel like you get away with something. You feel like you’re on an adventure; you feel like you’re coming out of the situation winning. It’s not ‘I don’t have enough,’ it’s, ‘I don’t want to spend,” said Lukas.  

But it’s not just about cutting costs with your cinema snacks. It’s about incorporating more money conversations into your daily life and taking care of the big things - like your pension and savings. 

My experience of ‘loud budgeting’

I’ve unknowingly been ‘loud budgeting’ for some time now. My financially savvy friends are the same.  

I’m lucky to have friends who are passionate about enjoying their money without spending lavishly - or as my close friend remarks, ‘boujee on a budget’ (boujee is slang for, “luxurious in lifestyle, yet humble in character”).  

Among my circle, we often discuss our weekly budgets, regularly circulate money saving tips and actively work towards creating a solid financial future. 

One friend - a former mortgage adviser, who has seen how hundreds of people spend their money across different incomes, taught me about the power of having a monthly budget. Another friend who enjoys regular beauty treatments, recommended an app that offers discounted beauty treatments.  

These conversations challenge the age-old idea that discussing money is a taboo - actually, with the right people, it’s empowering.  

Through these regular chats, I have the confidence to inform my friends if I’m on a budget and most importantly, if any of us have a question about money - however silly it may seem, there’s a safe space for discussion.   

More interest in investing

In exchange for the many pearls of wisdom I receive, I also share my financial knowledge with friends.  

While budgeting makes up one pillar of a strong financial foundation, I tell my friends again and again, it’s also important to take care of the big things too. Think a rainy-day fund, a stocks and shares ISA and a pension.  

My friends are not confident about investing and who can blame them? It can get complicated.  

Before I even explain what funds and stocks are, I ask them if they’re really ready to invest. For example, if they have debt or they don’t have a healthy rainy-day fund - (this amount varies from person to person) investing may not be the best idea. Fidelity’s are you ready to invest? Quiz is a helpful resource to figure this out. 

If they are in a good place to invest, I tell friends that they don’t need a large lump sum. They can consider regular saving. With a Fidelity’s Stocks and Shares ISA, you can invest from as little as £25 a month.  

When it comes to investing ideas, we regularly publish a list of articles each week. But a tracker fund may be a good start for a novice investor.  

Want to learn about the principles for investing? we’ve published five principles for good investing that you can get your teeth into.  

Why ‘loud budgeting’ is gathering steam

Being loud and proud about your money can have a positive impact on your finances - whether that’s budgeting or investing, but why is it trending?  

Well, young people are living through some incredibly tough economic conditions. In the UK, interest rates currently stand at 5.25%, the highest level since the 2008 financial crisis.  

High food and energy costs have also been eating into our disposable incomes - though recent data shows this is falling - food and non-alcoholic beverages shot up a whopping 8% year-on-year, according to the Office for National Statistics. 

‘Loud budgeting’ is a way of reclaiming some power in these challenging economic times. Having conversations about money allows young people to lean on community. Most importantly, it highlights that being financially savvy doesn’t always mean you need to ride solo.

Important information - investors should note that the views expressed may no longer be current and may have already been acted upon. Tax treatment depends on individual circumstances and all tax rules may change in the future. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.