FFinally, there's a TikTok trend that financial experts and therapists can get behind. It's all about budgeting. Amidst all the content encouraging us to buy more stuff we don't need at all (see: the latest “it” water bottle to replace the reusable water bottle you already have), the buzzworthy concept is that, against all odds, it actually saves money. no see. cool.
It all started at the end of 2023, when TikTok creator Lukas Battle declared “quiet luxury” for 2024 and “big budgeting.” In a follow-up video explaining the current viral trend, he defined big budgeting as “the opposite of quiet luxury.” ”—and argued that because “rich people hate spending money,” they are actually “more sophisticated, stylish, and flexible.” In other words, rather than spending more to follow the “stealth wealth” trend (or the TikTok home decor trend “bookshelf wealth”), budgeting is using your budget openly as a reason to spend less. know, real property.
Big bonus? Financial therapists say big budgeting can have a huge impact on your relationship with money and can help alleviate financial anxiety. Below, financial planners and therapists share how budgeting can help your bottom line. and Your mental health and how to put that concept into practice.
What is “big budgeting” and why do people do it?
Simply put, loud budgeting is about being vigilant about your spending with the goal of better maintaining your budget and overall financial health. “So when your friend texts you and says, ‘I want to hang out,’ it’s like saying, ‘I don’t want to spend gas money to go and listen to you talk about your ex for three hours.’” The battle in the explainer video above. Of course, his example may be a bit harsh for comic relief. You don't have to work that hard! But financial experts say the concept behind it is a sound way to save money.
why? You need to have a budget to be loud about it (this is always good for your financial health). This means taking into account your total take-home income and making a list of your expenses to figure out where you don't want to drop pennies. This kind of intentional spending allows you to do what's best aligned with your goals and priorities (both short-term and long-term), says Jordan Gilberti, CFP, certified financial planner at financial wellness platform Facet.
Then, being vocal about where your spending limit is (you might feel good about spending it on a nice dinner rather than a weekend getaway) can help you adjust exactly what's right in your budget and keep you accountable. And by telling you your current money scenario, I'm not encouraging others to neglect you for skipping their plans. You can take the pressure off of other people to keep up with their spending, or even seek out financial advice that can help others in your position.
Budgeting on a larger scale can help normalize the fact that we all have different wants and needs, different incomes and different expenses. And it can help break down the taboo that you shouldn't talk about money, says financial therapist Lindsay Bryan-Podvin, LMSW, CFT. -I, the author Financial anxiety solution. And when money becomes a fair topic of conversation, much of the stress we have can go away.
How can noisy budgeting help your mental health?
One of the main causes of financial stress is feeling like you can't control your money or stick to a budget. And peer pressure can play a key role in this. In a 2023 survey of over 1,000 adults conducted by Credit Karma, 36% of Gen Z and Millennials said their friends caused them to overspend. This accounts for a whopping 47% of Gen Z. 36% of millennials are considering cutting off these friendships altogether to avoid spending beyond their means.
“[With loud budgeting], so you can focus on what’s best for you rather than spending money trying to keep up with others.” —Courtney Alev, consumer finance advocate at Credit Karma
But setting a larger budget “allows you to focus on what's best for you instead of spending to keep up with everyone else,” says Courtney Alev, consumer finance advocate at Credit Karma. This way, Alev says, she can have more control over her financial decisions (and avoid mindless spending on social media) while also keeping her friends around. This is always good for your mental health too.
In other words, big budgeting can help remove some of the financial stress that comes from feeling like “money is something we have to do alone,” says Bryan-Podvin. Ultimately, talking openly about money and receiving social support can help remove unnecessary stigma, shame, and secrecy.
This is especially beneficial for people dealing with financial anxiety. This can make it difficult to sleep, cause you to avoid social situations, and cause many of the same physical symptoms that come with traditional anxiety, says Bryan-Podvin. I'm sweaty and sore and sore.
“Our anxiety loves to catastrophize and jump to conclusions,” says Bryan-Podvin. “For example, 'If I tell my friends I can't afford to go to an Airbnb with them for the weekend, they'll block me.' or 'They'll say I'm stupid and have no money.' .'” But just setting a budget in advance is likely to evoke a more neutral response (“No, I hope I can make it!”), which can help the brain “create new neural pathways that are more rooted in reality.” It makes things easier,” she says. Over time, it can help make conversations about money and sticking to a budget less anxiety-inducing.
What's the best way to practice noisy budgeting?
Real Talk: It's a lot to tell your friends that you have to skip that concert you've been talking about for months, or to break the news to your parents that you won't be able to fly home for the holidays this year. Easier said than done. Here's how to practice budgeting in a way that can help ease your stress about money and bring you closer to your family and friends in the process.
1. Be specific and vulnerable.
“I’m sorry I can’t go to dinner. I need to earn seven dollars a day to survive.” Battle says in his first video about budgeting: There's no need to be too explicit about the numbers, but financial experts say the key is to go beyond “I can't afford it” and share a little about the financial goals that motivate your decision to skip certain expenses. .”
Maybe it's something simple. “I’d love to go out to dinner, but I’m saving for a trip to Spain later this year,” suggests Gilberti. Or, if you feel you're close enough, “I'm going to be spending really heavily on social and entertainment expenses over the next three months because I'm trying to pay off credit card debt,” recommends Bryan-Podvin.
It may feel scary at first, but being vulnerable and transparent can help the other person feel closer to you, says Bryan-Podvin. And it might motivate them to start budgeting big.
2. Offer alternative ways to spend time together
If you're turning down dinner, suggest a free (e.g., a walk) or cheaper alternative (e.g., eating together at home) that fits your budget so you can still spend quality time with your family. People you care about, says Kendall Meade, CFP, CFT-I, a certified financial planner and therapist with SoFi.
3. Stick to the truth. (no matter how many times I say it)
Practice makes perfect. “You may end up having this conversation several times before a particular friend or family member fully understands your financial limitations,” says Alev. “But make sure those around you who overspend on you are aware of your limitations.”
If that friend who tends to pressure you (“You know, ‘We’re only young once!’”) doesn’t take your answer, be firm and back off. And bring your receipt. “Every time we go out, we spend at least $100, and that's the money we have to pay off our student loan debt right now,” says Bryan-Podvin.
And if you're having trouble holding on to your convictions, try focusing on what you can do with the money you save (an abundance mindset) rather than focusing on what you don't want to do or can't do. (scarcity mentality), says Gilberti. This might mean thinking about the big trip you're planning within the year. Or it could even be thinking about the dream home you plan to buy in 10 years. I just declined a dinner invitation.
Our editors select these products independently. If you purchase something through our links, Well+Good may earn a commission.