How some Gen Zers and millennials are using 'loud budgeting' to save money and make frugality cool

• Younger adults are embracing more frugal lifestyles to save money.
• Loud budgeting is the latest financial trend to go viral on TikTok as people look to save money.
• Loud budgeting focuses on celebrating frugality and talking about the decision to save.

As the calendar turned to 2024, there was a shift among some young adults embracing a new attitude toward finances called "loud budgeting."

The term appears to have originated from TikTok user Lukas Battle in December and is when someone is vocal about their choice to live frugally. This comes on the heels of the popular 2023 trend of "quiet luxury," in which people tried to be opulent without appearing braggadocious.

Paul Riley, a personal banking executive with NAB Bank in Australia, defined loud budgeting in a recent report.

"'Loud budgeting' is all about unapologetically prioritizing your own financial goals, setting smart boundaries on spending, and feeling comfortable to talk about it openly and authentically," Riley wrote.

There are many reasons young Americans are embracing loud budgeting and talking about it on TikTok, including eliminating debt and saving up to buy a home. However, the common thread is that being smart about money should not be frowned upon and there is also a certain level of accountability and motivation that comes from putting it out there for the world to see.

"One thing I love about loud budgeting is that there is absolutely no shame to it," user @itslisasun said on TikTok. "There is no shame in wanting to save money and being frugal."

Loud budgeting starts with a financial reset

Natalie Fischer, who runs the TikTok account @investwithnat, decided to fully embrace loud budgeting after spending more than normal last year, thanks to her wedding.

"Our lifestyle crept up, and we could not save and invest as much," Fischer told Business Insider.

She also recently quit a full-time job in the Seattle tech industry to concentrate on helping others become financially literate through her content creation on TikTok. To do that, she downgraded her lifestyle to make the transition smoother.

"I wanted to live below my means with the new reality that I was fully self-employed," Fischer said. "I embraced loud budgeting because I believe it will help me reach investing and savings goals faster."

Fischer is cutting back on small purchases that add up, like eyebrow waxing, and more expensive extravagances like laser hair removal that can cost thousands of dollars each year. She and her husband also participated in the "no-spend January" trend to "detox" from holiday season spending," she said.

She and her husband plan to use the extra savings to renovate their house and take a trip to her home country of Guam this year.

Loud budgeters are fighting back against lifestyle creep

Lifestyle creep, or when someone increases their spending as they earn more money, is another factor weighing on younger adults.

TikTok user Mia Westrap, who uses the handle @miawestrap, is documenting her use of loud budgeting, noting that she is making a realistic financial plan, eating out less, and cutting back on things like hair colorings. She explained that this became a goal after realizing that lifestyle creep had ruined her finances.

"Even though I am earning double what I did about three years ago, I'm still in the same financial position of ending the month at zero," Westrap said on Tiktok. "Because now that I have more money, I spend more."

In addition to more common saving practices like tracking your spending, making a budget, and reducing impulse spending, one new method many loud budgeters are embracing is saying "no" to social invitations that come with a price.

TikToker @michelineamisi warned her family and friends that she would not eat out or travel with them as much this year.

"I took a day to call all my family members and friends and tell them that in 2024, I am going to say 'no,' " she said on TikTok.

Loud budgeting is working

Loud budgeting is already having an impact on the finances of younger adults.

NAB Bank surveyed around 2,000 Australians about loud budgeting and released a report on January 22 that found Australians under the age of 30 are saving an average of 450 Australian dollars, or about $300, every month by embracing TikTok financial trends like loud budgeting and no-spend months.

The biggest sources of savings are all food-related, including dining out at restaurants, food delivery services, and "micro treats," which include coffee, snacks, and lunches away from home, the survey found.

Participating less in default group and family activities, like eating out or going to a bar, are common examples when loud budgeters talk about their 2024 goals.

For example, TikTok user @itslisasun noted that she embraced loud budgeting when she realized the good money values she grew up on had drifted away when she started earning more. In addition to doing more meal planning and prepping to save on food and alcohol spending, she also wants her friends to embrace the changes.

"I want my entire friend group to start doing things that are low cost, like we all go to someone's house and we all bring a plate of food, or we go to the park, or we play doubles tennis," she said on TikTok.

In addition to helping some reach their financial goals, it can spark conversations about how to limit the amount of money spent when trying to be social.

"By sharing my financial goals with my friends, they also opened up about their goals," Fischer told Business Insider. "We all decided to limit hangouts that involve spending money and instead opt for hangouts where we watch movies, have potlucks, and game nights, all in the comfort of our homes."

Are you participating in the loud budgeting trend and willing to share details about how you're saving money? If so, contact this reporter at cgaines@businessinsider.com.