8 Reasons Why “Loud Budgeting” Is Just a Fad

"Loud budgeting" is a concept that has emerged on social media — most prominently on TikTok — as a way to hold yourself accountable to financial goals.

The concept involves sharing goals related to money — whether it's hitting a particular savings milestone or cutting back on frivolous spending — with others. Many people find it easier to meet fitness goals if they share them publicly.

But like all fads, the staying power of loud budgeting is questionable at best. Here are eight reasons the trend might not help you get ahead financially in the long run.

There's a certain stigma or shame associated with struggling financially that might keep you from embracing the concept of loud budgeting.

For example, if you are trying to crush your debts, you might be reluctant to admit the problem got so out of hand before you finally tackled it.

Even if you start with good intentions and believe sharing your financial goals on social media will be helpful, you might find yourself embarrassed if you fall short of a goal or if you receive negative feedback.

While younger generations — particularly those on TikTok — seem to embrace speaking openly about many formerly taboo topics, many people are still uncomfortable talking about their finances.

If you choose to be vocal about your financial plans to friends or on your social media accounts, it may make them feel uncomfortable. That is particularly true if you share that you make significantly more or less money than they do.

Turning to a specific friend or online community can be helpful when trying to meet a financial goal. However, doing so can also open you up to all sorts of unsolicited advice.

For example, your best friend might not have the best suggestions on how to trim your monthly food budget. If you are going to practice loud budgeting, make sure to set boundaries.

Plenty of people overshare online, but oversharing about your finances could put you at risk in myriad ways.

One danger is that friends and loved ones may misinterpret your candor as a cry for help or as an attempt to avoid paying your fair share.

For example, telling friends you can't hang out because you are down to your last $10 for the week might be misinterpreted as you trying to guilt them into paying for you.

Sharing too much online goes hand in hand with opening yourself up to potential scams.

While it is doubtful that close friends or family would ever betray you in this way, posting personal information online makes you an easier target for bad actors and scam artists looking for new victims.

Just as having a gym buddy might work for some folks and not for others, sharing your financial goals might not give you the results you want.

Anyone can go online and say they will give up frivolous spending. However, your followers won't be with you at midnight when you make another irresponsible Amazon purchase.

Being vocal about what you think is a waste of money might alienate some people you care about.

For example, posting about how stupid it is to overspend on clothes, a summer vacation, or regularly eating out may not sit well with your followers who do believe it's worth it to splurge in these areas.

Despite the temptation to post everything online these days, there are easier ways to budget with less risk. If you really need the accountability of loud budgeting, at least consider going a little bit quieter.

Perhaps you can share some financial goals with a friend or family member — or even a spending journal — rather than the entire internet.

It's entirely possible — even likely — that "loud budgeting" will be just another TikTok trend that quickly fades away.

Personal accountability certainly can help with financial goals, but perhaps it doesn't have to be quite so loud.

The old tried-and-true methods of cutting spending to build wealth — such as quietly keeping an old-fashioned budget and carefully tracking your spending — work as well today as they always have.